{"id":2376,"date":"2020-04-19T00:09:17","date_gmt":"2020-04-18T16:09:17","guid":{"rendered":"https:\/\/www.fabianmoa.com\/?p=2376"},"modified":"2020-04-25T15:44:35","modified_gmt":"2020-04-25T07:44:35","slug":"binomial-option-pricing-model-with-excel-vba-for-european-options","status":"publish","type":"post","link":"https:\/\/fabianmoa.com\/2020\/04\/19\/binomial-option-pricing-model-with-excel-vba-for-european-options\/","title":{"rendered":"Binomial Option Pricing Model with Excel VBA (for European Options)"},"content":{"rendered":"\n\n[et_pb_section fb_built=&#8221;1&#8243; _builder_version=&#8221;4.4.1&#8243; hover_enabled=&#8221;0&#8243; custom_padding=&#8221;0px|||||&#8221;][et_pb_row _builder_version=&#8221;4.4.1&#8243;][et_pb_column _builder_version=&#8221;4.4.1&#8243; type=&#8221;4_4&#8243;][et_pb_text _builder_version=&#8221;4.4.1&#8243; hover_enabled=&#8221;0&#8243;]<p>The tree-based method is an easy-to-implement model for option pricing, and it can be used to value about any type of options (American options, barrier options, digital options, Asian options, etc).<\/p>\n<p>In this tutorial video, I will implement the popular Cox, Ross, and Rubinstein binomial tree option pricing model via Excel and then VBA. To make things simple, I will be covering European call and put options.<\/p>\n<p>The model can easily be extended to price American options by assessing whether early exercise is profitable at every node in the tree.<\/p>\n[\/et_pb_text][\/et_pb_column][\/et_pb_row][et_pb_row _builder_version=&#8221;4.4.1&#8243;][et_pb_column _builder_version=&#8221;4.4.1&#8243; type=&#8221;4_4&#8243;][et_pb_video src=&#8221;https:\/\/youtu.be\/mdym42qE3M8&#8243; _builder_version=&#8221;4.4.1&#8243; hover_enabled=&#8221;0&#8243;][\/et_pb_video][\/et_pb_column][\/et_pb_row][\/et_pb_section]\n\n","protected":false},"excerpt":{"rendered":"<p>The tree-based method is an easy-to-implement model for option pricing, and it can be used to value about any type of options (American options, barrier options, digital options, Asian options, etc). In this tutorial video, I will implement the popular Cox, Ross, and Rubinstein binomial tree option pricing model via Excel and then VBA. To [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":2389,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_et_pb_use_builder":"on","_et_pb_old_content":"","_et_gb_content_width":"","_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[29],"tags":[33,34,20],"_links":{"self":[{"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/posts\/2376"}],"collection":[{"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/comments?post=2376"}],"version-history":[{"count":0,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/posts\/2376\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/media\/2389"}],"wp:attachment":[{"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/media?parent=2376"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/categories?post=2376"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/fabianmoa.com\/wp-json\/wp\/v2\/tags?post=2376"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}