In this paper we show how the mathematical programming package Mathcad can be used to complement the construction of a binomial option tree in Excel. A binomial option tree is first constructed in Excel using standard spreadsheet 'cut and paste' operations. The same binomial tree is then...

This paper introduces a Mathcad program for teaching optimisation. The program, which involves a portfolio of equity shares, is less code oriented than GAMS and reinforces mathematical notation to a greater extent than the Excel solver. Also, the program adjusts automatically for alternative...