Binomial Option Price Calculator (CRR)
Cox-Ross-Rubinstein tree pricing for European calls/puts with adjustable steps — watch it converge to Black-Scholes.
Formula
The CRR lattice replicates the option with stock + bond at every node; as steps grow it converges to Black-Scholes (try 10 vs 200 steps). Its real power is flexibility — American exercise, discrete dividends and barriers all bolt on naturally.
Not financial advice — for informational and analytical use only. Verify all figures with a qualified professional before acting on them.
Need binomial option price calculator results fast? Analysts, founders, traders and finance professionals use the Binomial Option Price Calculator to skip the spreadsheet and get a defensible answer in one step — free, private and instant.
About Binomial Option Price Calculator (CRR)
Cox-Ross-Rubinstein tree pricing for European calls/puts with adjustable steps — watch it converge to Black-Scholes. The CRR lattice replicates the option with stock + bond at every node; as steps grow it converges to Black-Scholes (try 10 vs 200 steps). Its real power is flexibility — American exercise, discrete dividends and barriers all bolt on naturally. The governing relationship is u = e^(σ√Δt); p = (e^(rΔt) − d)/(u − d); backward induction. The Binomial Option Price Calculator computes entirely in your browser — free, private (your figures never leave your device) and instant, recalculating live as you change any input.
How to use Binomial Option Price Calculator (CRR)
- 1Enter Spot price, Strike price, Volatility (%), Risk-free rate (%), Days to expiry, Tree steps into the Binomial Option Price Calculator.
- 2The result is computed automatically using u = e^(σ√Δt); p = (e^(rΔt) − d)/(u − d); backward induction — there is no button to press.
- 3Change any input to model a different scenario, then copy or share the result.
Why use Binomial Option Price Calculator (CRR)?
- ✓Computes binomial option price calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter stay private
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
What is the formula behind the Binomial Option Price Calculator?+
Binomial Option Price Calculator uses u = e^(σ√Δt); p = (e^(rΔt) − d)/(u − d); backward induction. The CRR lattice replicates the option with stock + bond at every node; as steps grow it converges to Black-Scholes (try 10 vs 200 steps). The tool substitutes your actual inputs into this relationship and shows the worked example step by step.
What inputs does the Binomial Option Price Calculator need?+
Enter Spot price, Strike price, Volatility (%), Risk-free rate (%), Days to expiry, Tree steps and the result updates immediately — there is no button to press. Change any value to model a different scenario in real time.
Is the Binomial Option Price Calculator free, and is my data private?+
Yes — it is completely free with no sign-up or usage limit, and it runs entirely in your browser, so the numbers you enter are never uploaded or stored on any server. It is for informational and analytical use, not financial advice.
What should I watch out for when using the Binomial Option Price Calculator?+
Its real power is flexibility — American exercise, discrete dividends and barriers all bolt on naturally.
What is the Binomial Option Price Calculator based on?+
The method follows authoritative sources: Cox, Ross & Rubinstein (1979), JFE 7. The formula and references are shown on the page so you can verify and cite the result.
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