### Derivative Calculator

Change the *initial price* of the underlying; the *strike price* of the underlying; the *interest rate range* (from *lower* to *upper* rate). Pick from 1 to 8 randomly generated *interest rate scenarios*. Check the status bar for any input errors. The applet generates an interest rate scenario and price scenario based on simulated movements in 100 discrete periods (about every 2 trading days). The scenarios unfold in time in the red slider bars, from the first period to the 100th period at the end of the year. The Answer -- the *Expected Value of the Derivative* -- is the average of the option values over all scenarios.

*About the Problem*