I'm using the examples at Examples To Understand The Binomial Option Pricing Model to verify my binomial pricing program. The value of q (risk neutral probability of up move) given in the example of a put option with strike price $110 currently trading at $100 near the bottom of the page is 0.35802832. My program correctly calculates this value. However, the next example (put option with current underlying price of 10 and strike price of 12) calculates q to be
0.531446 but my program calculates it as 0.4689445012347036 which I believe is correct. Is investopedia just wrong or am I wrong?
Also, what is a good place to find binomial pricing examples which I can use for verification of my program?
Thank you,
First time poster.
0.531446 but my program calculates it as 0.4689445012347036 which I believe is correct. Is investopedia just wrong or am I wrong?
Also, what is a good place to find binomial pricing examples which I can use for verification of my program?
Thank you,
First time poster.
