CM2 Financial Engineering
Options, binomial trees, Brownian motion and portfolio theory, with the CM2 formula sheet.
Interactive tools
Option payoff diagrams
Price calls and puts with Black-Scholes, combine up to four legs plus the underlying, and see breakevens, max profit and max loss instantly. Made for CM2, SP5 and CFA revision.
Binomial option pricing
The Cox-Ross-Rubinstein tree drawn live: European and American calls and puts, early-exercise nodes highlighted, and convergence to Black-Scholes as the steps multiply.
Brownian motion simulator
A fan of share-price paths animating live, with drift and volatility sliders. The model behind Black-Scholes, and the volatility drag made visible. CM2.
Efficient frontier playground
Three assets with adjustable returns, risks and correlations: the frontier, the minimum-variance and tangency portfolios and the capital market line, drawn live. CM2, SP5 and CFA.
Interest rate models
Vasicek and CIR short-rate fans with mean reversion on sliders: negative-rate counts, the Feller condition, and the pull towards the long-run level made physical. CM2.