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Valuing Options – Binomial Tree – Traditional Approach – EXCEL Example
About the course
The course consists of an EXCEL file that contains examples illustrating the pricing of options using the conventional or traditional Binomial Trees approach. In particular the following options are priced:
- American Call Option
- American Put Option
- European Call Option
- European Put Option
The file also illustrates how Greeks (i.e. sensitivity measures) for each of these options are calculated from the constructed binomial trees.
After taking this course you will be able to:
- Price European and American call and put options using the traditional binomial tree approach
- Calculate the Greeks for these options using the binomial trees
The candidate should be comfortable with basic mathematics, statistics, probability and EXCEL and have some knowledge of derivative products.
This course is for beginners in the finance field and is also aimed at banking, corporate, treasury and sales teams.