We provide very simple formulas for pricing both the European and American options.The existing methods of option pricing adopt strong assumptions. Furthermore, they use advanced mathematics to produce controversial pricing methods. The use of mathematically advanced models does not necessarily...

We overcome a major obstacle in the literature. In doing, we introduce a simple, closed-form formula for pricing the American options. In particular, we significantly simplify Alghalith's closed-form formula for pricing American options. In doing so, we introduce a formula that does not require...