# Basket option pricing: step by step tutorial for beginners

I would like to learn how to price options written on basket of several underlyings.

I've never tried to do it and I would appreciate if you can provide some documents, papers, web sites and so on in order I can collect materials to build my own step by step guide.

I know the first step should be Black & Scholes formula, then I found out other methods exist like Beisser, Gentle, Ju, Milevsky etc.

At the end of my studies, I would like to price basket options in R building my own index by weighted sum of several assets' prices.

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Hi, what books do you have on the subject so far? –  Nikos Dec 13 '12 at 12:23
No books, I've got just what I found by Google but this doesn't allow me to build up a smoothed learning curve. I will look for something on J. Hull's Options, futures and derivatives on Tuesday, I hope something is there. –  Lisa Ann Dec 14 '12 at 14:11