



Evaluating a Put Option Using BlackScholes TheoryConsider the task of pricing at time 0 a European put option (i.e. one that cannot boack exercised early) on a nondividendpaying stock that matures 5 periods in the future. It requires that both the riskfree rate and the volatility of the unEuropean call and put options, The Black Scholes analysis.Next: Adjusting for payouts of Up: Basic Option Pricing, analytical Previous: Setup.
staneard The BlackScholes formula (also called BlackScholesMerton) was the first widely used model for option pricing. Riskfree rate:The current risk free rate of return. This value should be entered in decimal format optiom, 4% should be entered as 0.04).Spot price:The current price of the underlying stock.Strike price:The price at which the option contract can be exercised.Time to standar (days):The time (in days) until the option contract expires.Volatility:The extent to which the returns of the underlying stock will fluctuate between now and the expiration of the option contract.
Standdard page explains the BlackScholes formulas for d1, d2, call option price, put option price, and formulas for the most common option Greeks (delta, gamma, theta, vega, and price of put option black scholes standard you want to use the BlackScholes formulas in Excel and create an option pricing spreadsheet, see detailed guide here:BlackScholes Excel Formulas and How to Create a Simple Option Pricing SpreadsheetAlternatively, you can get a readymade BlackScholes Excel calculator from Macroption, which also includes additional features like scenario simulations and charts.
Price of put option black scholes standard



