I've been reading a finance paper and stumbled upon this phrase. What does passing to the limit mean in this context (or overall in mathematics)?
Here is an excerpt from the paper:
It is straightforward to generalize the example by passing from the time index set {0, 1} to an arbitrary finite discrete time set {0, . . . , T} by considering T independent Bernoulli random variables. This binomial model is called the Cox-Ross-Rubinstein model in finance. It is not difficult — at least with the technology of stochastic calculus that is available today—to pass to the (properly normalized) limit as T tends to infinity, thus ending up with a stochastic process driven by Brownian motion.