Implied trinomial trees (ITTs) present an analogous extension of trinomial trees proposed by Derman, Kani, and Chriss (1996). Like their binomial counterparts, they can fit the market volatility smile and actually converge to the same continuous limit as binomial trees. In addition, they allow...

The software XploRe offers many nice tools for modelling implied trinomial trees (ITT’s). ITT is an option pricing technique which tries to fit the market volatility smile. It uses an inductive algorithm constructing a possible evolution process of underlying prices from the current market...

Credit scoring methods became standard tool of banks and other financial institutions, direct marketing retailers and advertising companies to estimate whether an applicant for credit/goods will pay back his liabilities. In this thesis we give a short overview of credit scoring and its methods....