Equal Probabilities Binomial Tree Setup
Propagate equal probabilities equity tree
|Specify time structure for Equal Probabilities binomial tree|
|Build Equal Probabilities stock tree|
|Create stock structure|
Understanding Equity Trees
Instruments Toolbox™ supports five types
of recombining tree models to represent the evolution of stock prices.
Pricing Equity Derivatives Using Trees
Pricing functions calculate the price of any set of
supported instruments based on a binary equity price tree, an implied
trinomial price tree, or a standard trinomial tree.