This presentation is about the use of Black-Sholes model(1973) for pricing an option. This option pricing model is a formula that is
used to determine a fair price for a call or put option based on factors such as :
The current underlying stock price (S)
The strike price of the option (X)
The time left until the option's expiration date (T)
The volatility of the stock (sigma)
The risk-free interest rate (rf)
How to Access
The App can be accessed using an internet connection. Click here to access the App.
A new browser window will open to show the controls and the visualizations in different tabs.
How to use it
In the left panel, the user enter values for the five (5) parameters:
current stock price,
current strike price
Time until option exercise
Volatility
Risk-free interest rates
After clicking on Evaluate button, the correspoding value of the Call option and the Put option is displayed in the main panel
