Using Excel to calculate Black-Scholes-Merton option price

This is Black-Scholes for a European-style call option. You can download the XLS @ this forum thread on my site:
http://www.bionicturtle.com/forum/viewthread/3746/

Category:

Education

Tags:

• Finance
• Derivatives
• Stock
• Options

[bionicturtledotcom]

You can find link to the XLS in the description field directly below the video. Thanks!

[ironcdr]

@bionicturtledotcom

Hi David, thanks for the video! The link in the description field is no longer available. Where would it be possible for me to download the XLS?

Thanks!

[JCTgroupco]

thanks a lot for sharing, bro

[jptelthorst]

How you calculate the greek values?

[DrDainbramaged]

In your equation for C, shouldn't S be multiplied by e^-qT to take account of dividends? In this case it works out, because you're discussing a case in which the dividend yield is assumed to be 0 (thus making e^-qT = 1), but since you show the place of q in d1 it seems like it would make sense to represent the place of q in C as well, for consistency's sake.

Thanks for the vids, btw. Love 'em.

[manurajeev]

hi just wondering if i want to calculate the number of days , do I take 365 days or 250

[cicikiz85]

thank you very much from Italy!!

[yyl111]

what about american option?

[Lenora1027]

Thank you so much!!!!

[lmospina42]

@jawadalishe no, one thing is the call option and another is the put option. The call option is the right to buy and specific asset in the future(0.5 years, 6 months for specific price (K)). So, if the spot price(So), is higher than K, you should exercise the call option. The put option is the same, but you should exercise it if K is higher than So. And the volatility is the standar deviation of the asset. The volatility should be per year

[jawadalishe]

@lmospina42 so if the call option is high then investor call or put it.. And what does it means volatility...