Option Pricing - Binomial Model

The Binomial Options Pricing Model (BOPM) provides a generalizable numerical method for the valuation of options. The binomial model was first proposed by Cox, Ross and Rubinstein (1979). Essentially, the model uses a “discrete-time” (lattice based) model of the varying price over time of the underlying financial instrument. In general, binomial options pricing models do not have closed-form solutions.

http://spreadsheetzone.com/958/Option-Pricing-Binomial-Model.html