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Financial Instruments Toolbox

Equity Instruments

Financial Instruments Toolbox provides functions for modeling the evolution of stock prices using these models:

  • Cox-Ross-Rubinstein (CRR)
  • Equal probabilities (EQP)
  • Leisen-Reimer (LR)
  • Implied trinomial tree (ITT)

With these discrete-time models, you can create binomial or trinomial trees and illustrate the expected stock price for each node in the tree with the corresponding volatility.

The toolbox also provides functions for calculating portfolio prices and sensitivities based on binomial and trinomial equity price trees.

Financial Instruments Toolbox supports the following equity options:

  • Vanilla (American, European, and Bermuda)
  • Compound
  • Barrier
  • Asian
  • Lookback
  • Digital
  • Rainbow
  • Chooser
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