Tag: binomial

• Option Pricing Model (07 Feb 2021)
  

  The price of option depends on many factors, current stock price, strike price, implied volatility and expiration date. According to Investopedia, the most common pricing model is Black Scholes Model. Howerver, it does not take into account the execution of American Style options, which can be exercised at any time before, and including the day of, expiration, for which Binomial Option Pricing Model should be used.