Using Option Pricing Calculator Proficiently.
Hola, I am a finance student in Spain, and today I stumbled upon this new thing called option pricing Calculator online. How can I learn to use it easily and proficiently?
Hola, I am a finance student in Spain, and today I stumbled upon this new thing called option pricing Calculator online. How can I learn to use it easily and proficiently?
You can visit option calculator homepage on the link http://www.option-price.com/. It calculates the theoretical profit and loss according to the parameters that have been defined. European style call and a put option are used for generating prices and risk values. It works on the mathematical formula devised by Black and Scholes (1973).
Two things; payoff expected of the option and option expiring probability in money, run this formula. You have to consider Volatility Day Count, Dividends, Options for future, etc. properly using the discrete values of inputs. The Option Price Calculator uses 365 calendar year. Profit and Loss Graphs also display the real profit or loss, thus helping with your personal finance.