Option pricing--Binomial Model and Black Scholes

A quick look at the two main ways to price options

  1. Binomial Option Pricing

    This is based on the idea that prices can go up or down. From that simple start, and using the ability to lend and borrow, we can determi...

    1 min read
  2. Binomial (one step) for option price

    The binomial solves for the price of an option by creating a riskless portfolio.

  3. CFA L2- Risk Neutral Probability- Binomial Option Pricing Model

    We offer the most comprehensive and easy to understand video lectures for CFA and FRM Programs. To know more about our video lecture seri...

  4. Examples To Understand The Binomial Option Pricing Model | Investopedia

    "In an arbitrage-free world, if we have to create a portfolio comprising of these two assets (call option and underlying stock) such that...

  5. Binomial options pricing model

    In finance, the binomial options pricing model (BOPM) provides a generalizable numerical method for the valuation of options. The binomia...

  6. Black-Scholes model - Wikipedia, the free encyclopedia

    The Black-Scholes or Black-Scholes-Merton model is a mathematical model of a financial market containing derivative investment instrument...

  7. Payoff to Call Options at Expiration (using a Milk Coupon as the example)

    A look at how much a call option is worth at expiration. Includes payoff diagrams. Introduction to financial derivatives

  8. Introduction to the Black-Scholes formula

    Learn for free about math, art, computer programming, economics, physics, chemistry, biology, medicine, finance, history, and more. Khan ...

  9. Black-Scholes Excel Formulas and How to Create a Simple Option Pricing Spreadsheet

    Below I will show you how to apply the Black-Scholes formulas in Excel and how to put them all together in a simple option pricing spread...

  10. Option Calculators

    Below are some examples of option calculators...most sites will allow you to do either Black-Scholes or Binomial

    1 min read
  11. Binomial

    MITI's Binomial Calculator is an easy tool that can calculate the fair value of an equity option based Binomial Models along with the Gre...

  12. Options Calculator

    Thanks to Drexel, you can also calculate all of the greeks :)

  13. Put-call parity

    Learn for free about math, art, computer programming, economics, physics, chemistry, biology, medicine, finance, history, and more. Khan ...

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