Black-Sholes Calculation for a European Option's Premium:
This program calculates the European option's premium for both put and calls, using Black-Scholes' formula. The top five yellow cells must have values in it, while the results are displayed in the green cells.
Fill in the fields
Using the Program
The two bottom cells give the user more control over the calculations. If the riskless interest is not defined as continuous compounding, then you select yes to convert the interest rate into continuous compounding. Finally, the user can define how many points to use in estimating the integral of the normal probability distribution. The default value is 50, which is a good trade off between speed and accuracy.
The following arithmetic operations can be inserted into any of the cells
The Black-Scholes Equations are: