![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![Downloads](/images/database/downloads-top.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) Binomial Option Pricing, the Black-Scholes Option Pricing Formula, and Exotic Options
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/grey-line.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif)
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/grey-line.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif)
Mathematica in Education and Research |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/grey-line.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) The authors show that in the limit the binomial option model considered in their first article converges to the Black-Scholes option pricing formula. They then consider the pricing of "exotic" options, whose value depends on the price path of the underlying asset.
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/grey-line.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif)
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/grey-line.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif)
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |
![](/images/database/download-cdf-player.gif) |
![](/images/database/grey-line.gif) |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif)
| Black-Scholes.nb (107.5 KB) - Mathematica Notebook |
![](/common/images/spacer.gif) |
![](/common/images/spacer.gif) |