The OPTONFX.lng ModelBinomial Options Pricing model on Foreign Exchange
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This example is a binomial option pricing model on foreign exchange:
What is the value in dollars of an option to buy one unit of a foreign currency at specified/strike exchange rate? We assume that the exchange rate can either go up from one period to the next with probability PUP, or down with probability (1 - PUP).
Keywords:
Binomial Option Pricing | Break Even Point | Derivatives | Financial | Foreign Exchange | FX | Options | Portfolio | Probabilities | Sales | Uncertainty | Accounting | Banking