/Option-Pricing-in-the-Multi-Period-Binomial-Model

Build a multi-period binomial model whose parameters are calibrated to a Black-Scholes geometric Brownian motion model.

Primary LanguagePythonMIT LicenseMIT

Option-Pricing-in-the-Multi-Period-Binomial-Model

Build a multi-period binomial model whose parameters are calibrated to a Black-Scholes geometric Brownian motion model.

Functions:

  • European stock option pricing
  • American stock option pricing & earliest time to exercise (it only matters for a put, since it's never optimal to early exercise a call)
  • European single-stock futures option pricing
  • American single-stock futures option pricing & earliest time to exercise