Posted on Thu 29 March 2018 in Finance • Tagged with finance, binomial-model, python
This post will be the last post, at least for the time being, in the series discussing the binomial model for pricing options. In the previous post we implemented this model in Python in order to find prices for basic European call options. In this post, we'll expand the implementation …
Posted on Thu 15 March 2018 in Finance • Tagged with finance, binomial-model, python
In the previous posts in this series, we've described a model for stock price movements that can be used to find prices of simple European call and put options. The model works by dividing the life of the option into some number of discrete intervals, and assuming that the stock …
Posted on Fri 02 March 2018 in Finance • Tagged with finance, binomial-model
In the previous post introducing the Binomial Options Pricing Model, we discussed a very simple model for the movement of stock prices. In that model, we assumed that at the end of a certain period of time, the value of a stock could take on one of two possible values …
Posted on Fri 16 February 2018 in Finance • Tagged with finance, binomial-model
A lot of work in mathematical finance is related to the pricing of financial derivatives, that is, financial assets that have values that depend on (that is, values that are derived from) the value of another asset. Some of the simplest derivatives are European call and put options. In this …