Binomial Option Pricing

Community

CRR binomial trees for option pricing.

Authorbrainbytes-dev
Version1.0.0
Installs0

System Documentation

What problem does it solve?

Binomial Option Pricing guides users through pricing European and American options using Cox-Ross-Rubinstein binomial trees, including early exercise boundaries and convergence to Black-Scholes.

Core Features & Use Cases

  • European and American option pricing with a recombining tree
  • Multiple parameterizations (CRR, Jarrow-Rudd, Tian, Leisen-Reimer)
  • Handling dividends (discrete/continuous) and convergence analysis
  • Practical methodology with step-by-step backward induction and examples

Quick Start

Price a European call with S=100, K=100, r=5%, sigma=30%, T=1 using a 200-step CRR binomial tree

Dependency Matrix

Required Modules

None required

Components

Standard package

💻 Claude Code Installation

Recommended: Let Claude install automatically. Simply copy and paste the text below to Claude Code.

Please help me install this Skill:
Name: Binomial Option Pricing
Download link: https://github.com/brainbytes-dev/everything-claude-trading/archive/main.zip#binomial-option-pricing

Please download this .zip file, extract it, and install it in the .claude/skills/ directory.
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