A B 1 2 3 INPUT Stock Price Strike Price Life of the Option Risk Free Rate Standard Deviation 4 $ 100.00 5 $ $ 95.00 6 0.25 7 0.07 8 0.20 9 10 11 OUTPUT 12 Black-Scholes Model $ 8.056 $ $ 1.408 13 Call 14 Put $ 15 N
A B 1 2 3 INPUT Stock Price Strike Price Life of the Option Risk Free Rate Standard Deviation 4 $ 100.00 5 $ $ 95.00 6 0.25 7 0.07 8 0.20 9 10 11 OUTPUT 12 Black-Scholes Model $ 8.056 $ $ 1.408 13 Call 14 Put $ 15 N
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Can someone please show me the right formula on excel to do the European call and put options for the Black-Scholes model? The excel formula listed in the image doesn't work and I would love to be able to see how to make this work.
Thanks in advance!
Transcribed Image Text:A
B
1
2
INPUT
Stock Price
Strike Price
Life of the Option
Risk Free Rate
Standard Deviation
$ 100.00
$ 95.00
4
0.25
7
0.07
8
0.20
9
10
11
OUTPUT
12
Black-Scholes Model
$ 8.056
$ 1.408
13
Call
14
Put
15
16
C13 = Call_Eur (C4,05,C6,C7,C8)
C14 %3D Put_Eur (С4,C5,С6,С7, С8)
17
18
19
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