Black-Scholes Option Price Excel Calculator
  • Black-Scholes Option Price Excel Calculator
  • Black-Scholes Option Price Excel Calculator
  • Black-Scholes Option Price Excel Calculator
Originally published: 30/04/2019 15:22
Publication number: ELQ-19918-1
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Black-Scholes Option Price Excel Calculator

Call and put options price calculator that uses the Black-Scholes model for option pricing

Description
This model is a call and put options price calculator that uses the Black-Scholes model, a widely-used model for fair option pricing. The model can be used to calculate the value of a European option based on the current stock price, current strike price, expected interest-rate, time to expiration and the expected volatility of the underlying asset price.

Please note the following underlying assumptions of the Black-Scholes model:
1. The underlying price follows a geometric lognormal diffusion process
2. The risk-free rate is known and constant
3. The volatility of the underlying asset is known and constant
4. There are no taxes or transaction costs in buying the option
5. There are no cash flows on the underlying (for example, payments of dividends)
6. The options are European (so they cannot be exercised before the expiration date, unlike U.S. options)

To use, simply input underlying asset price, exercise price, risk-free interest rate, volatility and time to expiration to calculate the option value.

If you have any questions surrounding this tool, or you are interested in customization of the tool, you can either start a discussion below or contact us directly via private message via our Eloquens author account! See our channel for additional templates and resources like this one.

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1 Black-Scholes option pricing model

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