How to Calculate Black-Scholes-Merton Option Pricing Model for Call Option?
Black-Scholes-Merton Option Pricing Model for Call Option calculator uses Theoretical Price of Call Option = Current Stock Price*Normal Distribution*(Cumulative Distribution 1)-(Option Strike Price*exp(-Risk Free Rate*Time to Expiration of Stock))*Normal Distribution*(Cumulative Distribution 2) to calculate the Theoretical Price of Call Option, The Black-Scholes-Merton Option Pricing Model for Call Option formula is defined as a mathematical model used to calculate the theoretical price of European-style options. It was developed by economists Fischer Black and Myron Scholes, with contributions from Robert Merton. Theoretical Price of Call Option is denoted by C symbol.
How to calculate Black-Scholes-Merton Option Pricing Model for Call Option using this online calculator? To use this online calculator for Black-Scholes-Merton Option Pricing Model for Call Option, enter Current Stock Price (Pc), Normal Distribution (Pnormal), Cumulative Distribution 1 (D1), Option Strike Price (K), Risk Free Rate (Rf), Time to Expiration of Stock (ts) & Cumulative Distribution 2 (D2) and hit the calculate button. Here is how the Black-Scholes-Merton Option Pricing Model for Call Option calculation can be explained with given input values -> 7568.256 = 440*0.05*(350)-(90*exp(-0.3*2.25))*0.05*(57.5).