What is selling a put option binomial pricing


What is selling a put option binomial pricing


This article needs additional citations for verification. Please help improve this article by adding citations to reliable sources. Unsourced material may be challenged and removed. (November 2015) ( Learn how and when to remove this template message)In finance, a put or put option is a stock market device which gives the owner of a put the right, but not the obligation, to sell an asset (the underlying), at a specified price (the strike), by a predetermined date (the expiry or maturity) to a given party (the seller of the put).

Rather than relying on the solution to stochastic differential equations (which is often complex to implement), binomial option pricing is relatively simple to implement in Excel and is easily understood.No-arbitrage means that markets are efficient, and investments earn the risk-free rate of return.Binomial trees are often used to price American put options, binomkal w.




Is option selling put what a pricing binomial

What is selling a put option binomial pricing


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