From Bob Jensen at Trinity University http://www.trinity.edu/rjensen/
The following table is from a Black-ScholesCalculator.xls Excel spreadsheet file on the path http://www.cs.trinity.edu/~rjensen/Calgary/CD/FAS133OtherExcelFiles/
This partial Black-Scholes Model Calculator was created by Bob Jensen at Trinity University | |||||||||||
http://www.trinity.edu/rjensen/ | |||||||||||
The page numbers below refer to the second edition of my ACCT 5341 textbook by Robert Strong. | |||||||||||
Derivatives: An Introduction by Robert A Strong, Edition 2 (Thomson South-Western, 2005, ISBN 0-324-27302-9) | |||||||||||
The purpose of the derivations below is to question the outcomes of online Black-Scholes model calculators. | |||||||||||
0.158900 | Time Remaining parameter on Page 140 (in years) | ||||||||||
57.998500 | Time Remaining parameter on Page 140 (in days) | ||||||||||
1.906800 | Time Remaining parameter on Page 140 (in months) | ||||||||||
35.75% | Volatility parameter on Page 143 (as a percentage) | ||||||||||
6.10% | Interest Rate parameter on Page 140 | ||||||||||
$70.75 | Spot Price | ||||||||||
$70.00 | Strike Price | ||||||||||
-0.2140 | d1 on Page 143 (for input into a standardized normal distribution) | ||||||||||
-0.0715 | d2 on Page 143 (for input into a standardized normal distribution) | ||||||||||
0.415273529 | N(d1) using NORMSDIST() statistical function in Excel | ||||||||||
0.471499912 | N(d2) using NORMSDIST() statistical function in Excel | ||||||||||
$3.62 | BSOPT Price of an European Put Option on Page 143 | ||||||||||
0.2032 | d1 on Page 133 | ||||||||||
-0.0229 | d1 on Page 134 | ||||||||||
0.5805 | N(d1) using NORMDIST() statistical function in Excel | ||||||||||
0.4909 | N(d2) using NORMDIST() statistical function in Excel | ||||||||||
$7.04 | BSOPT Price of an European Call Option on Page 133 | ||||||||||
This should help you derive your own BSOPT calculator. | |||||||||||
All you have to do is derive your own functions for computing the d1 and d2 parameters. | |||||||||||
Now let's consider compare the above answers with several online calculator alternatives. | |||||||||||
$3.62 | Put value derived above that is also given on Page 143 of the Strong textbook | ||||||||||
$3.33 | Put value from the option price calculator at | http://www.hoadley.net/options/optiongraphs.aspx? | |||||||||
$3.24 | Put value from the option price calculator at | http://www.blobek.com/black-scholes.html | |||||||||
$3.30 | Put value from the option price calculator at | http://www.erieri.com/scripts23/blackscholes/blackscholes.exe/Calculate | |||||||||
$7.04 | Call value derived above that is also given on Page 143 of the Strong textbook | ||||||||||
$4.76 | Call value from the option price calculator at | http://www.hoadley.net/options/optiongraphs.aspx? | |||||||||
$4.66 | Call value from the option price calculator at | http://www.blobek.com/black-scholes.html | |||||||||
$4.73 | Call value from the option price calculator at | http://www.erieri.com/scripts23/blackscholes/blackscholes.exe/Calculate | |||||||||
If anybody can explain the above discrepancies, I'd sure like to know about it. | |||||||||||
Bob Jensen | mailto:rjensen@trinity.edu | ||||||||||