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American Options

This iphone app was built as a tool to calculate an estimate of the price of an American Option derivate using the binomial tree method. A binomial tree is a method that calculates all the possible extreme values using a time differential, time duration and the volatility as basic inputs. This method generates all the values in the future and then returns step by step to the first one with a value in each step. The final value, is the American Option Value.

This method is the most basic one to get this value. Other methods using different configurations of the binomial tree, such as the trinomial tree, are more precise; but they need more computational power.

This program can calculate up to 200 time intervals.

Screenshot of the iphone App

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