Approximating Diffusions with Trionomial Trees - Maple Programming Help

Online Help

All Products    Maple    MapleSim


Home : Support : Online Help : Math Apps : Finance and Economics : Finance/Tour/TrinomialTrees

Approximating Diffusions with Trionomial Trees

Overview

In the following application, we show how tools from the Finance package can be used to approximate diffusions.

 

Trinomial trees are frequently used to approximate the movements in the price of a stock or other underlying asset.  These lattice based computational models are extensions of the binomial options pricing model.

μ=

σ=

dSt = μtdt+σSt, tdWt

 

 

More MathApps

MathApps/Finance and Economics

 


Download Help Document

Was this information helpful?



Please add your Comment (Optional)
E-mail Address (Optional)
What is ? This question helps us to combat spam