Bund options

Discussion in 'Options' started by Grant, Sep 28, 2006.

  1. Grant


    Which is the the standard model to determine implieds on Bund options?

    Being US-style exercise, Black or Black-Scholes are inappropriate.

    All things considered, the Hull and White model, utilising trinomial trees, seems the favourite but also appears somewhat complex to my non-mathematical mind.

    Any suggestions?

    Thank you.