What's the Binomial Options Pricing Model Formula?

Discussion in 'Options' started by wentonchan, Apr 25, 2008.

  1. Hi everyone,

    Anyone have a link to the BOPM formula for American options? I'm trying to figure out what it is so I can code it up in excel. I can't understand the one on wikipedia; any help would be most appreciated.

  2. If you look at the bottom of the wikipedia article you'll find a bunch of pdfs that go into it further.

    For coding in excel look at books by Simon Benninga and Fabrice Rouah.