Black-Scholes Model (European)
Description: Need a European-style Black-Scholes calculator to calculate the value of a Put Option or Call Option? Or, maybe you're just interested in how the calculation works, or maybe you want something just to double check a calculation? Either way, this spreadsheet will help. All of the formulas can be read (and modified if you think that's necessary).
To use this Black-Scholes calculator all you have to do is enter the required inputs (in total there are 8), each cell is a required input, so if something happens to be zero a "0" still needs to be input. Within most of the inputs there are notes, which provide some additional guidance in completing the related input. Below are some of the links that we've referenced within the notes, we think these links will be beneficial:
Due to the amount of judgement associated with determining the correct inputs, this site does not offer any guidance in that area, the suggestions provided are just that, suggestions. As always, it is up to you to understand each input and to select the inputs necessary.
Once the inputs are entered, both the call option and the put option are calculated. We've also shown the formulas for the primary parameters - d1 and d2. The time to expire is shown in Days, Months, and Years. This calculation is based on the Start Date and Expiration Date as well as the number of days in the year. Adjust as necessary. Note, be sure to delete the example information before beginning. Also, all items in the input section are required to be completed, therefore, if an item is zero enter a "0" in that cell.
For those of you who want this Black-Scholes Model combined with the historical volatility also found on this site we've combined them for you in the link below.
Disclaimer - the Spreadsheetshoppe.com does not take any responsibility for trades made using the information on this site. The information found here is being provided for educational / informational purposes only, any actions taken as a result of this information is strictly the responsibility of the user. Trading financial instruments of any kind, including but not limited to, options, futures, and stocks carry significant potential risk. No representation is made that by using the information on this site will or are likely to achieve profits or losses indicated.
This website, its owners, its associates and/or its representatives are not registered as securities broker-dealers or investment advisors with any state securities regulatory authority. We recommend consulting with a registered investment advisor, broker-dealer, and/or financial advisor. If you choose to invest with or without seeking advice from such an advisor or entity, then any consequences resulting from your investments are your sole responsibility.
Basically, use common sense and understand that the accuracy or validity of the information / calculations found on this site should not be construed as a recommendation to purchase or sell any type of security, or to provide investment advice.
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* Note, utilizing the features of this excel template requires Microsoft Excel® 2007 or later - this template/tool will work in 2003; however, the colors may be different than shown in the picture(s).