Options pricing – Using binomial trees to price options in a spreadsheet
2 mins read 1. Derivative and Options pricing Derivatives and options are instruments whose payoffs depend on the movement of underlying assets. The price
2 mins read 1. Derivative and Options pricing Derivatives and options are instruments whose payoffs depend on the movement of underlying assets. The price
< 1 min read This course focuses on an alternative method of implementing a two-dimensional binomial tree compared to the traditional method of building a binomial tree in excel presented in most option pricing text books. The alternate approach is based on the techniques documented by Professor Mark Broadie at Columbia Business School as part of his coursework in Security Pricing and Computational Finance courses at Columbia University and allows us to extend a simple 3 step tree to a 50 – 100 step option pricing tree in a few minutes.
2 mins read Teaching small businesses the language of credit and finance; the first step in removing access to finance barriers. Access to
28 mins read Complex swaps Key concepts Although the standard swap structures meet the needs of many hedgers and investors, there are occasions
22 mins read Credit derivatives Key concepts Credit derivatives are instruments whose value is derived from that of an underlying bond, loan or
16 mins read Thomas A. Fetherston at the University of Albama put this together at some point in time, possibly for his students