Financial Derivatives Toolbox 5.3

Product Description

• Introduction and Key Features
• Working with Equity Options
• Working with Fixed-Income Instruments
• Creating Portfolios and Hedging Strategies

Working with Equity Options

The toolbox provides functionality for modeling the evolution of stock prices using the Cox-Ross-Rubinstein (CRR), the Equal Probabilities (EQP), or the Implied Trinomial Tree (ITT) method. With these discrete-time modeling methods, you can create binomial or trinomial trees and illustrate the expected stock price for each node in the tree with the corresponding volatility. The toolbox also provides functionality for calculating portfolio prices and sensitivities based on a binary and trinomial equity price tree.

Financial Derivatives Toolbox supports the following equity options:

• Vanilla (American, European, Bermuda)
• Compound
• Barrier
• Asian
• Lookback