I am relatively new to options so bear with me. So if you have a Strike Price K at $65 and the Stock Price is at 58 with a risk free rate of .05 per anum and time of maturity of 2 months. By finding the present value of the 65 and subtracting it by the stock price you get a value $6.46. My question is how is this different than using something like the binomial pricing strategy?
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