In this session we see how binomial trees may be constructed in EXCEL using a much more efficient "correct" approach as proposed by Mark Broadie and Paul Glasserman in their derivatives course at Columbia University. The approach makes it much easier to extend the tree for increased time steps as compared to the traditional approach. We illustrate the construction of the tree for a European call option and then show how easily and quickly it can be updated for a European put option.
If you are interested in this course, please visit our page - Option Pricing using Binomial Trees Course at http://financetrainingcourse.com/education/finance-training-videos/options-pr...
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