15
The Binomial Options Pricing Model
LEARNING OBJECTIVES
After completing this chapter, you will be able to answer the following questions:
What is meant by the binomial model for options pricing?
What is meant by no-arbitrage options pricing?
How to calculate the price of a call option using single-period, two-period, and multi-period binomial models?
How to calculate the price of a put option using single-period, two-period, and multi-period binomial models?
How to calculate the price of a call and a put option on stocks that pay dividends using binomial models?
How to calculate the price of an American call and an American put option using binomial models?
BOX 15.1 Binomial Options Pricing Models Used to Value Employee Stock Option ...
Get Derivatives and Risk Management now with the O’Reilly learning platform.
O’Reilly members experience books, live events, courses curated by job role, and more from O’Reilly and nearly 200 top publishers.
