Binomial Option Calculator
The Binomial Tree option pricing model can be used to calculate either European or American style option. An American option can be exercised at any time up to the maturity date, unlike the European option, which can only be exercised at maturity.

The Binomial Tree option model is not much used in valuing European style option since the Black & Scholes option pricing model already give the good result. However, when dealing with American style option, we have to use Binomial Tree option pricing model since it allows us to check whether early exercise is possible.

The Binomial option calculator can deal with either European or American style option without dividend payout. Notice that the more steps the Binomial Tree model has, the more accurate answer it would give.

European call European put American call American put

Input parameters		Result
Stock price (S)	$	Option price (P)	$
Strike price (X)	$
Years to maturity (T)	Year
Risk free rate (R)	%
Number of steps	Steps
Volatility (V)	%

Visualized Binomial Tree

Here shows the visualized Binomial Tree with the parameters set from the option calculator above. The visualized Binomial Tree only show the first five steps. The stock prices are shown in 2 decimal places while option prices are shown in 4 decimal places.

Run it!!

Time
Steps

Stock price
Option value
	Stock price
	Option value
		Stock price
		Option value
			Stock price
			Option value
				Stock price
				Option value
					Stock price
					Option value

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