Pricing Double Barrier Options

Double Barrier options are path-dependent options. They have two pre-defined barriers, one higher and one lower than the current asset price. If the asset price crosses either barrier, the option is either initiated (for an in or knock-in barrier) or…

Calculate Implied Volatility with VBA

This article offers VBA code and an Excel spreadsheet to calculate the implied volatility of an option. This parameter is often compared to the historical volatility of the underlying asset to determine if the price of an option represents good value.