Binomial put and call pricing

`[AssetPrice, OptionValue] = binprice(Price, Strike, Rate, Time,`

Increment, Volatility, Flag, DividendRate, Dividend, ExDiv)

| Underlying asset price. A scalar. |

| Option exercise price. A scalar. |

| Risk-free interest rate. A scalar. Enter as a decimal fraction. |

| Option's time until maturity in years. A scalar. |

| Time increment. A scalar. |

| Asset's volatility. A scalar. |

| Specifies whether the option is a call ( |

| (Optional) The dividend rate, as a decimal fraction.
A scalar. Default = 0. If you enter a value for |

| (Optional) The dividend payment at an ex-dividend date, |

| (Optional) Ex-dividend date, specified in number of periods. A row vector. Default = 0. |

```
[AssetPrice, OptionValue] = binprice(Price, Strike,
Rate, Time, Increment, Volatility, Flag, DividendRate, Dividend,
ExDiv)
```

prices an American option using the Cox-Ross-Rubinstein
binomial pricing model.

Cox, J., S. Ross, and M. Rubenstein, "Option Pricing:
A Simplified Approach", *Journal of Financial Economics
7*, Sept. 1979, pp. 229-263.

Hull, John C., *Options*, *Futures*, *and
Other Derivative Securities*, 2nd edition, Chapter 14.

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