How does the Binomial Option Pricing Model Calculator work?
Free Binomial Option Pricing Model Calculator - This shows all 2t scenarios for a stock option price on a binomial tree using (u) as an uptick percentage and (d) as a downtick percentage This calculator has 6 inputs.
What 2 formulas are used for the Binomial Option Pricing Model Calculator?
What 6 concepts are covered in the Binomial Option Pricing Model Calculator?
Polynomial which is the sum of two monomials
binomial option pricing model
iterative number tree for pricing options
the price at which an underlying security can be purchased or sold when trading a call or put option
a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date
risk free rate
the rate of return offered by an investment that carries zero risk
the shares of which ownership of a corporation or company is divided