What Is the pric Function in MATLAB for TIAN Pricing Model?

[madi281]

i got this code of the internet, the reason i am unable to run is beacuse of this "pric" file, its like a "binprice" in matlab, but i think it is self made. this code is for a binomial model to solve TIAN pricing model

%File: TIAN1.m
% Objective: Binomial pricing of "in-the-money" american put
%option using TIAN binomial model
% Author: Group 4
S0=40;
K=45;
T= 5/12;
r= 0.08;
sigma = 0.30;
price=1:250;
for n=25:250
deltat=T/n;
M=exp(r*deltat);
V=exp(sigma^2*deltat);
s=sqrt(V^2+2*V-3);
u=M*V*(V+1+s)/2;
d=M*V*(V+1-s)/2;
p=(M-d)/(u-d);
beta=1/M;
V=pric(S0,K,u,d,p,beta,n); the error comes from this line as shown below
price(n)=V(1,1);
end;
plot(25:250,price(25:250));
xlabel('Iterations');
ylabel('Option Value');
title('Binomial Pricing');

Error in ==> TIAN1 at 20
V=pric(S0,K,u,d,p,beta,n);

so if anyone knows this pric file or does know a way around it, will be much better.

 

[LightHero]

Unfortunately, it appears that the "pric" file is not available. Without this file, it will be impossible to run the TIAN1.m code. You may need to contact the author of the code or search online for more information on the "pric" file.

 

[Mene]

I would suggest reaching out to the author or the source of the code, as they would have the most knowledge about the "pric" file and its purpose in the code. Alternatively, you could try finding a different code or algorithm for solving the TIAN pricing model that does not require the "pric" file. It is important to fully understand the code and its components before using it for financial analysis or decision making.