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the second factor is (x^2 + 4x + 4). Multiply the two factors together to get the factored form of the binomial: (2x - 2)(4x^2 + 4x + 4) in the example equation.
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Factor trinomials of the type ax^2 + bx + c using the FOIL — first, outer, inner, last — method. A factored trinomial consists of two binomials. For example, the expression (x+2)(x+5) = x^2 + 5x + 2x + 2(5) = x^2 + 7x + 10. When the leading coefficient, a, is o...
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Zero-coupon convertibles are priced using option pricing models such as theBlack-Scholesmodel; tree-based models(such as thebinomialortrinomial model); or thedividend valuation model. The underlying share price, assumptions about the behavior of the price, assumed equity valuation, and an assumed ...
Several options pricing models use these parameters to determine thefair market valueof an option. TheBlack-Scholesmodel is the most widely known.2Other models commonly used include thebinomial modelandtrinomial model. The primary drivers of the price of an option are the current stock price, intr...