notes figure two views of binomial tree (ab (bb alternativelyyou can think of bk as being comprised of two binomial trees of order - examplefigure (bshows that is made up of two instances of in generalsuppose you have two trees of order - say - and - where - { - then you can construct binomial tree of order by combining the trees to get bk { - - why do you call bk binomial treeit is because the number of nodes at given depth in the tree is determined by the binomial coefficient and the binomial coefficient derives its name from the binomial theorem and the binomial theorem tells us how to compute the nth power of binomial and binomial is an expression which consists of two termssuch as + that is why it is called binomial treetask "binomial tree is general true with very special shapediscuss lovely professional university