Question
There are a number of web sites that will calculate the value of an option, some of the use Black Scholes. Some of the sites
There are a number of web sites that will calculate the value of an option, some of the use Black Scholes. Some of the sites you may try include:
www.option-price.com www.optionsprofitcalculator.com www.calloptionputoption.com
Pick one of these or another web page that contains an option calculator and do the following:
Create a call option that you wish to price and input into the model the following (some calculators may ask for more information):
Share Price
Strike Price
Time to Maturity
Interest Rate
Volatility
Submit your input and results in a table. What do the results tell you? How would you use the results of the model in your portfolio strategy?
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