Implied Trinomial Tree Setup

Propagate implied trinomial equity tree

Functions

itttimespecSpecify time structure using implied trinomial tree (ITT)
itttreeBuild implied trinomial stock tree
stockoptspecSpecify 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.