Binomial Option Pricing

[curiousgeorge]

Does anyone know how to easily calculate binomial option value? Preferably without using VBA...

 

[al_b_cnu]

Hi, Welcome to the board!

Never heard of it myself, but how about this link (involves VBA though
http://www.anthony-vba.kefra.com/vba/vba7.htm

 

[curiousgeorge]

I am now using that but for some reason my excel is not able to recognize the function...i keep getting the #Name error. suggestions?

 

[al_b_cnu]

Hi,

Presumably you installed the functions by [ALT-F11] then Insert / Module, and pasted the code into the code window.

Also you did include the underscores when calling the functions "Bi_Call_Eur" and "Bi_Put_Eur", didnt you

 

[curiousgeorge]

yes and yes.. but i still get the same #name error

 

[al_b_cnu]

Hi, Seems to work for me:

Book1
	A	B	C	D
1	-0
2	1278.408
3	1279.407
Sheet1

Formulae are:
A1 =binoCoeff(9,99)
A2 =Bi_Put_Eur(1,2,3,4,5,6)
A3 =Bi_Call_Eur(1,2,3,4,5,6)