The extension of the Black-Scholes option pricing theory to the valuation of barrier options is reconsidered. Working in the binomial framework of CRR we show how various types of barrier options can be priced either by backward induction or by closed binomial formulas. We also consider...

Binomial models, which rebuild the continuous setup in the limit, serve for approximative valuation of options, especially where formulas cannot be derived mathematically. Even with the valuation of European call options distorting irregularities occur. For this case, sources of convergence...

Binomial models, which describe the asset price dynamics of the continuous-time model in the limit, serve for approximate valuation of options, especially where formulas cannot be derived analytically due to properties of the considered option type. To evaluate results, one inevitably must...

Die vorliegende Arbeit befa_t sich mit der Bewertung von Down-and-out Calls. Es werden die Vertragseigenschaften und das resultierende Hedgeportfolio untersucht und die Unterschiede zu einem europdischen Call verdeutlicht. Daneben stehen unterschiedliche Bewertungsverfahren im Mittelpunkt des...