94 A Simple binomial model: Example A stock price is currently $20 In three months it will be either $22 or $18 Stock Price $22 Stock price $20 Stock Price =$18 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 9.4 A Simple Binomial Model: Example • A stock price is currently $20 • In three months it will be either $22 or $18 Stock Price = $22 Stock Price = $18 Stock price = $20