Trinomial Model 3

Please follow link to code:

In this video, I work out the value of an American Put option using a 9 step manual tree. Again the results are consistent with Espen Haug's vba code and the C++ code obtained from Fabrice Rouah. Espen's Excel VBA code was translated to C++ with some modifications. The Put Option is developed by using the previous worksheet on the American Call option and modifying simply the intrinsic estimation at each node.