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This is an html version of the Mathematica notebook from the short course at the University of Houston Clear Lake.    In this web document, you will see a sample run of that notebook.   If you have a copy of Mathematica, you may want to get the actual notebook from my homepage. Disclaimers: Some of the fonts in this web rendition don't appear correctly when compared with the notebook; my apologies.   Also: remember that in the notebook, I kept some material "hidden" from view (with the intent of making the notebook less cluttered). Recall that you were instructed to 'double click' on the cells on the right. In this web rendition, whenever you are asked to 'double click' on some cells, simply click on the message telling you to do that -- the hidden Mathematica cells have been placed in a separate web page and clicking on the link will take you there.

Now we begin the web version.


1.  BUT FIRST: A lightning introduction to Mathematica - double click on the far right of this line to open this subsection

You will open and close subsections or sections by doubleclicking on the cells as highlit in blue on the far right.

2.  How to price a European call option
     --a simplified model (basic idea of the binomial method)

3.  Some non-technical articles, and technical articles and books

4.  How to model stock (asset) prices

5.  The Black-Scholes equation (for pricing European call options) and comparison with implementation of the binomial method

If you want a copy of this notebook, just drop me an email note:
       kremin@boisdarc.tamu-commerce.edu
    www.tamu-commerce.edu/coas/math.


Converted by Mathematica      April 4, 2001