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L
Lattice Model

A general term for a method of option valuation, such as binomial. The "lattice" refers to the fact that possible share-price movements at different times for exercising are presented in a lattice or a tree. Even more complex lattice models than the binomial are the trinomial and multinomial models. Further reading about stock option valuation is available in the section Basics: Valuation & Expensing elsewhere on this website.

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