Function to plot a Binomial stock Tree
stockoptiontreegui()A plot of Stock Tree / Option Tree with user specified parameters.
The user inputs are as follows: Type of Option: chosen between Call/Put Exercise style: chosen between European/American Stock Price: to be entered in numbers for e.g. 120.50 Strike price: to be entered in numbers for e.g. 110.50 Time in number of years: to be entered in decimals. For e.g. 0.25 for a quarter year Volatility(or sigma) per annum: to be entered in decimals. For e.g. 0.25 for 25 percent Risk free rate per annum: to be entered in percent. For e.g. enter 5.0 for 5 percent u: up move factor- to be entered in decimals. For e.g. 1.25 d: down move factor- to be entered in decimals. For e.g. 0.80 q: probability of up move- to be entered in decimals. For e.g. 0.60 Dividend yield: to be entered in decimals. For e.g. 0.02 for 2 percent No of steps: Clicking on the '+' and '-' respectively increases and decreases the value. Plot type: chosen between Stock tree / option tree
John C. Hull, "Options, Futures, and Other Derivatives", 8/E, Prentice Hall, 2012.