File Name: Employee Stock Options – Simple American Call Option
Location: Modeling Toolkit | Real Options Models
Brief Description: Computes the American call option (the option is exercisable at any time up to and including maturity) using binomial lattices and closed-form solutions
Requirements: Modeling Toolkit, Real Options SLS
Figure 170.1 shows how an American Call Option can be computed using the Real Options SLS software. American options are, of course, exercisable at any time prior to and up to and including the maturity period.
Figure 170.1: American call option