For each option, the fair price to be set. But how do you actually price option? If we assume that the basic knowledge choices in the present note, two methods of pricing:. Binomial tree and formula Black-Scholes/Merton «Hide
by George Chacko, Peter Hecht, Vincent Dessain, Anders Sjoman 15 pages. Publication Date: April 1, 2005. Prod. #: 205106-PDF-ENG