[Abstract for] Using Excel’s “LAMBDA” Feature to Produce Multi-Stage Stock Pricing Functions for the Classroom

Tom Arnold, University of Richmond
Joseph Farizo, University of Richmond
Jonathan Godbey

Abstract

Excel’s new “=LAMBDA” function is applied to multi-stage stock pricing. This provides a context for implementing the =LAMBDA function, a greater understanding of the concept of the time value of money, and a reduction in the complexity of performing the calculation. The =LAMBDA functions lessens the need for using VBA and macros and only requires basic knowledge of Excel function syntax.