Our goal here is to study American options in discrete time without using probability and stochastic process . Using the binomial model we compute the fair price of European and American options. We explain the notion of Arbitrage and the notion of the fair price of an option using common sense. Finally, we give a criterion that the holder can use to decide when it is appropriate to exercise the option  .
Our goal here is to discuss the pricing problem of European and American options in discrete time using elementary calculus . Using the binomial model we compute the fair price of European and American options. We explain the notion of Arbitrage and the notion of the fair price of an option using common sense. We give a criterion that the holder can use to decide when it is appropriate to exercise the option . We also discuss the portfolio's optimization problem .
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study
discuss the pricing problem of European and
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without using probability and stochastic process
using elementary calculus
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Finally, we
We
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. We also discuss the portfolio's optimization problem