How does the Black-Scholes Calculator work?
Free Black-Scholes Calculator - Calculates the call or put option value of a stock based on inputs related to the option using Black Scholes method.
This calculator has 5 inputs.
This calculator has 5 inputs.
What 2 formulas are used for the Black-Scholes Calculator?
Call Option Value = S*Φ(d1) - Xe-rTΦ(d2)
Put Option Value = (X/er*n) * (1 - Φ(d2)) - S * (1 - Φ(d1))
For more math formulas, check out our Formula Dossier
Put Option Value = (X/er*n) * (1 - Φ(d2)) - S * (1 - Φ(d1))
For more math formulas, check out our Formula Dossier
What 7 concepts are covered in the Black-Scholes Calculator?
- black-scholes
- pricing model used to determine the fair price or theoretical value for a call or a put option
- call option
- an option to buy assets at an agreed price on or before a particular date
- option
- a contract which conveys to its owner, the holder, the right, but not the obligation, to buy or sell a specific quantity of an underlying asset or instrument at a specified strike price on or before a specified date
- price
- the amount of money expected, required, or given in payment for something
- put option
- an option to sell assets at an agreed price on or before a particular date
- stock
- the shares of which ownership of a corporation or company is divided
- volatility
- Measures dispersion of returns for an stock or index
Black-Scholes Calculator Video
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