Option pricing is a fundamental aspect of financial engineering. This repository provides Python implementations of several widely-used option pricing models, including the Black-Scholes model, Binomial Tree model, and Monte Carlo simulations. These models can be used to price European and American options, as well as other derivatives.

Models Included:

Black-Scholes Model: A closed-form solution for pricing European options. Binomial Tree Model: A discrete-time model for pricing American and European options. Monte Carlo Simulation: A numerical method for pricing options using random sampling. Finite Difference Method: A numerical approach for solving the Black-Scholes PDE. Implied Volatility Calculation: A method to compute the implied volatility given an option price. And much more!

Core References: Black, F., & Scholes, M. (1973). The Pricing of Options and Corporate Liabilities. Journal of Political Economy, 81(3), 637-654. Cox, J. C., Ross, S. A., & Rubinstein, M. (1979). Option Pricing: A Simplified Approach. Journal of Financial Economics, 7(3), 229-263. Hull, J. C. (2018). Options, Futures, and Other Derivatives. Pearson Education.