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A streamlined take on the original Cox, Ross and Rubinstein method.

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Binomial-Options-Pricing-Model

Info on the Cox, Ross and Rubinstein paper. The purpose of this repository is to provide a more efficient method of generating binomial pricing trees based on BOPM. My initial commits will include STEP 1 - 3 as described in the wikipedia article.

This method takes advantage of a recursive pattern in the binomial pricing matrices in order to reduce the number of floating point calculations by an order of n time steps in the tree.

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A streamlined take on the original Cox, Ross and Rubinstein method.

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  • Jupyter Notebook 90.9%
  • Python 9.1%