What's new


  1. Nicole Seaman

    YouTube T4-09: Binomial option pricing model for equity index, currencies, and futures options

    Using a three-step binomial to price "options on other assets" (Hull 13.11 10th edition): equity index option, currency options and futures options (aka, options on futures contracts). The key difference is the calculation of p = probability of an up jump. For options on dividend-paying assets...
  2. Nicole Seaman

    P1.T4.813. Binomial model for options on currencies and futures (Hull Ch.13)

    Learning objectives: Explain how the binomial model can be altered to price options on: ... currencies, and futures. Define and calculate delta of a stock option. Questions: 813.1. Below is illustrated the two-step binomial tree implied by the following assumptions for a six-month put option...