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Implied Trinomial Tree Setup

Propagate implied trinomial equity tree

Functions

itttimespec Specify time structure using implied trinomial tree (ITT)
itttree Build implied trinomial stock tree
stockoptspec Specify European stock option structure

Topics

Understanding Equity Trees

Financial Instruments Toolbox™ supports five types of recombining tree models to represent the evolution of stock prices.

Pricing Equity Derivatives Using Trees

Pricing functions calculate the price of any set of supported instruments based on a binary equity price tree, an implied trinomial price tree, or a standard trinomial tree.

Use treeviewer to Examine HWTree and PriceTree When Pricing European Callable Bond

This example demonstrates how to usetreeviewerto examine tree information for a Hull-White tree when you price a Europrean callable bond.