Welcome to my option calculator site
Introduction to option
There are two basic type of options. A call option
gives the holder the right to buy the underlying asset while a put option gives
the holder the right to sell the underlying asset by a certain date for a
certain price. American options can be exercised at any time up to the
expiration date. European options can be exercised only on the expiration date
itself.
Up to now, there are a lot of option pricing model to evaluate option prices. The famous model is the Black & Scholes option pricing model. There are other option valuation models that are widely used in the derivative market these days, such as binomial tree model, trinomial tree model, Monte Carlo simulation, finite differences methods.
To demonstrate how option derivatives are calculated, two option calculators are implemented based on Black & Scholes option model and binomial tree model.
Calculators
Black & Scholes option calculator
Binomial Tree option calculators (with visualization of tree)
Binomial Tree option calculator with continuous dividend yield (with visualization of tree)