Understanding Binomial Trees: Definitions, Examples, and Calculations

Explore the binomial tree model's use in option pricing, its workings, and examples. Learn how this model estimates intrinsic ...
Investopedia

How the Binomial Option Pricing Model Works

Learn about an important method for valuing derivatives and other assets Gordon Scott has been an active investor and technical analyst or 20+ years. He is a Chartered Market Technician (CMT). Timothy ...
JSTOR Daily

Implied Binomial Trees in Excel without VBA

We implement a Rubinstein-type (1994) implied binomial tree using an Excel spreadsheet, but without using VBA (Visual Basic Application). We demonstrate both the optimization needed to generate ...
Risk

The convergence of binomial trees for pricing the American put

We study 20 different implementation methodologies for each of 11 different choices of parameters of binomial trees and investigate the speed of convergence for pricing American put options ...