Implied Trinomial Tree Setup
Propagate implied trinomial equity tree
Setup an implied trinomial equity options tree model.
Functions
itttimespec | Specify time structure using implied trinomial tree (ITT) |
itttree | Build implied trinomial stock tree |
stockoptspec | Specify European stock option structure |
Topics
- Understanding Equity Trees
Financial Instruments Toolbox™ supports five types of recombining tree models to represent the evolution of stock prices.
- Pricing Equity Derivatives Using Trees
Pricing functions calculate the price of any set of supported instruments based on a binary equity price tree, an implied trinomial price tree, or a standard trinomial tree.
- Use treeviewer to Examine HWTree and PriceTree When Pricing European Callable Bond
This example demonstrates how to use
treeviewer
to examine tree information for a Hull-White tree when you price a European callable bond.