Chapter 1: Introduction
This chapter focuses on modern Option Pricing techniques and provides the reader with a good general understanding of the reasons behind carrying this project and what I am trying to achieve. This chapter gives the readers a brief description of the main analysis techniques and evaluation methods and financial background on the data. A Gantt chart will also be included to visualize the estimated time scale, project deadlines.
Chapter 1.1: Data Collection
The aim is to collect historic Data from Data Stream and to be used for testing purposes and also to describe how it was collected, stored and executed.
Chapter 1.2: Methodology
This carries out software implementation of the project using VBA and how to build the model application using pseudo code. Variables, functions and macros are also elaborated in details.
Chapter 2: Option Pricing Theory Background
The background will give more in-depth information about different aspects that corresponds to option pricing, what it is composed of.
Chapter 2.1: Basics of Option Pricing
This chapter takes it in depth to understand the variety aspects of option pricing, and their contributions to value options.
Chapter 2.2: Binomial Option Pricing Model
This chapter expands on the Binomial tree technique and valuation of an option manually via this model.
Chapter 3: Testing results and Evaluation of software
This section discusses the accuracy of the findings obtained from the application in relation to the original literature reviewed. What further features shall be added to the software and what unnecessary features shall be axed to improve the software!
Chapter 4: Data Comparisons
This chapter will describe the outputs of the program. Present some graphs of processed and raw data, describe them. Describe the numeric outputs of the program, what they mean.
Chapter 5: Conclusion
This chapter will discuss the strengths and weaknesses of the software application and what has been achieved throughout this project.
Chapter 6: Recommendations
This chapter looks closely at possibility of any improvements could be made to the application either by adding new features or extending the models used to achieve a better accuracy of results.
This will contain list of all the sources and references used in order to gather relevant information to complete this project.
This includes any extra information to support this project.
This manual is used for novice users that explain how to use or operate around the host application. It will also include sub-function