In this paper we introduce and study random Cox-Ross-Rubinstein (CRR) model. The CRR model is a natural bridge, overture to continuous models for which it is possible to derive the Black Scholes option pricing formula. An attractive property of CRR model is that the binomial tree for geometric Brownian motion is consistent with the standard Black-Scholes formula for European options in that no ...

BACKGROUND Reporting of absolute risk difference (RD) is recommended for clinical and epidemiological prospective studies. In analyses of multicenter studies, adjustment for center is necessary when randomization is stratified by center or when there is large variation in patients outcomes across centers. While regression methods are used to estimate RD adjusted for baseline predictors and clus...