New Options pricers available in ifrcvdm.com

2014-10-13

Black-Scholes and Binomial option pricers are now available from March 4th, 2014.

Option traders utilize various option price models to attempt to estimate theoretical value. Models use certain fixed knowns in the present – factors such as underlying price, strike and days till expiration – along with forecasts (or assumptions) for factors like implied volatility, to compute the theoretical value for a specific option at a certain point in time. Variables will fluctuate over the life of the option, and the option position's theoretical value will adapt to reflect these changes.


Black & Scholes model is used for European style option (index option for example). Cox-Ross-Rubinstein Binomial (1979) model can calculate the price of early exercise options (American style) using a numerical approximation.