Option Pricing Calculators
bsm.py: Uses the Black-Scholes model to calculate the value of a European option. binom.py: Uses the binomial method to calculate the value of an American option
The binomial method in binom.py does not account for dividends. However, it offers an efficient calculation method due to its creative use of sparse matrices.
To use either of the option pricing calculators, simply import the necessary functions from the respective file:
from bsm import function_name_here from binom import another_function_name_here
For detailed information on each function and its parameters, please refer to the docstrings within the respective .py files.
This project is licensed under the MIT License - see the LICENSE file for details.