The trinomial option pricing model is an option pricing model incorporating three possible values that an underlying asset can have in one time period.

The trinomial tree is a lattice-based computational model used in financial mathematics to price options. It was developed by Phelim Boyle in 1986.

Trinomial tree model is just an extension of Binomial model from having two branches of either price of a share going up or decreasing to having three branches ...

Building on binomial model, the trinomial model was developed, in which the stock price follows a three-jump process. It could jump up or down, or remain the ...

The price of an option is derived using this trinomial lattice by starting from the last price or the expiration time price by discounting one step backward.

The Trinomial option pricing model is in many ways similar to the Binomial Model. It is an open-form model, which generates not one answer but rather a number ...

This paper develops a trinomial option pricing model that incorporates the first four moments of the stock return distribution. The model, constructed under ...

In this section we will investigate how the option prices obtained from the trinomial model converge to the Black-Scholes price. This will be investigated ...

This study discusses the determination of call option prices using the Trinomial Tree method and the Black-Scholes method with the data of Microsoft ...

Abstract: This paper reviews the binomial and trinomial option pricing models and their convergence to the Black-Scholes model result.