This is a notebook about the Binomial Options Pricing model. We formulate the model, give examples and explore the limiting behavior as the size of the interval becomes smaller. We demonstrate the ...
To use this project, ensure you have a C++ compiler installed on your machine. The project relies on standard libraries and does not require additional dependencies. Follow these steps to set up the ...
In this article, we will explain the basic factors that affect the value of a call option and introduce two common methods to estimate it: the binomial model and the Black-Scholes formula.
There are two important models for option pricing – Binomial Model and Black-Scholes Model. The model is used to determine the price of a European call option, which simply means that the option can ...