Jess Benhabib Department of Economics New York University 19 West 4th Street, 6th Floor New York, NY 10012 and NBER jess.benhabib@nyu.edu Chetan Dave New York University Department of Economics 19 W.
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4 Lattice model (or tree model) provides a simple way to price derivatives. In the existing literature, additional branches are required in the lattice for derivative pricing under the MRSM.
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