This simple calculator estimates the value of a European call option using a
one-step binomial option pricing model.
Enter the inputs below, then click Calculate to see the stock prices in each state,
the risk-neutral probabilities, the option payoffs, and the option value today.
Inputs
Use the class example or enter your own values.
FYI only: this version uses the simple one-step classroom formula with the time input included in the probability expression.