This is a class to price plain vanilla european call and put options, written in Java.
At the moment, the supported methods are the following:
- Price an option using either a Monte Carlo simulation or the Black and Scholes formula.
- Plot the random walk of a stock.
Perhaps in the future I'll add other derivatives and pricing methods. There is no fixed schedule or plan though. Critics, comments, suggestions are all welcomed. Feel free to contribute if you want to.
Check this article for some examples written in Python and C++ of the algorithms used (Monte Carlo and Black & Scholes formula).
Other articles are available at The Beginner Programmer.
This project is for educational purpose only. The author is not responsible for any consequence or loss due to inappropriate use. The project may contain mistakes and errors. The numbers and methods used used might not be accurate. You should never use any part of this project for purposes different from the educational one.
I developed this project for fun and to improve my coding skills, not for actual use.
See the LICENSE file for license rights and limitations (GPL 3.0).