The Binomial Options Pricing Model (BOPM) is a simplified approach to how options and stocks move together. It is based upon hedging and arbitrage. For each time period, only two price movements are possible.
Binomial Calculator Link (referenced in class): http://www.rotman.utoronto.ca/%7Ehull/software/DG200.01.xls
Binomial Options Pricing Model (BOPM) Electronic DiskLecture
(Includes excel templates, sample exercises, formulas, and other calculations)