9.2 A Simple binomial model of stock Price movements In a binomial model the stock price at the BEGINNING of a period can lead to only 2 stock prices at the ENd of that period Options, Futures, and Other Derivatives, 4th edition@ 2000 by John C. Hull Tang Yincai, Shanghai Normal UniversityOptions, Futures, and Other Derivatives, 4th edition © 2000 by John C. Hull Tang Yincai, Shanghai Normal University 9.2 A Simple Binomial Model of Stock Price Movements • In a binomial model, the stock price at the BEGINNING of a period can lead to only 2 stock prices at the END of that period