Black Scholes Calculator

Black Scholes Calculator

The Black-Scholes Calculator is a financial tool used to calculate the theoretical price of European call and put options. This model helps traders and investors evaluate the fair market value of options, considering factors like stock price, strike price, time to maturity, volatility, and risk-free interest rates. It is widely used in the options market to make informed trading decisions. The calculator implements the Black-Scholes formula, which considers no-arbitrage principles in a perfectly efficient market. This tool is essential for professionals in finance and anyone exploring derivatives trading.

Formula

The Black-Scholes formula for call and put options:

Call Option Price (C): C = S * N(d1) - X * e^(-r * T) * N(d2)

Put Option Price (P): P = X * e^(-r * T) * N(-d2) - S * N(-d1)

Where:

• d1 = [ln(S/X) + (r + σ²/2) * T] / (σ * √T)
• d2 = d1 - σ * √T

How to Use This Calculator

To use the Black-Scholes Calculator, enter the following values:

• Current stock price (S)
• Strike price (X)
• Time to maturity in years (T)
• Volatility (σ) as a percentage
• Risk-free interest rate (r) as a percentage

Click the "Calculate" button to see the theoretical prices of call and put options, along with the intermediate calculations (d1 and d2).

Calculator

Stock Price (S): Strike Price (X): Time to Maturity (T in years): Volatility (σ as %): Risk-Free Rate (r as %): Calculate Clear

Parameter	Value