Difference between revisions of "Manuals/calci/CALLOPTION"

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*<math>Time</math> is the period value.
 
*<math>Time</math> is the period value.
 
*<math>Interest</math> is the rate of Interest.
 
*<math>Interest</math> is the rate of Interest.
 
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**CALLOPTION() shows the value of the Call option.
CALLOPTION() shows the value of the Call option.
 
  
 
==Description==
 
==Description==
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==Examples==
 
==Examples==
  
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==Related Videos==
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{{#ev:youtube|v=EfmTWu2yn5Q|280|center|Call Option}}
  
 
==See Also==
 
==See Also==

Latest revision as of 12:59, 11 March 2019

CALLOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)


where

  • and are any two price values.
  • is the period value.
  • is the rate of Interest.
    • CALLOPTION() shows the value of the Call option.

Description

CALLOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)

  • is the spot price of the underlying asset of a derivative.
  • is the price at which an underlying security can be purchased or sold.
  • is the period for the Call.
  • is the rate of interest.
  • A call option is an agreement that gives an investor the right, but not the obligation, to buy a stock, bond, commodity or other instrument at a specified price within a specific time period.
  • Call Option helps to remember that a call option gives the right to call in, or buy, an asset.The profit is on a call when the underlying asset increases in price.
  • Call options are typically used by investors for three primary purposes.
  • These are tax management, income generation and speculation.


Examples

Related Videos

Call Option

See Also


References