Difference between revisions of "Manuals/calci/PUTOPTION"
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| − | + | =PUTOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)= | |
| + | |||
| + | where | ||
*<math>UnderlyingPrice</math> is the spot price | *<math>UnderlyingPrice</math> is the spot price | ||
*<math> ExercisePrice</math> is the price at which an underlying security can be purchased or sold. | *<math> ExercisePrice</math> is the price at which an underlying security can be purchased or sold. | ||
| + | PUTOPTION() gives the values of Put Option function. | ||
==Description== | ==Description== | ||
| − | + | ||
| − | + | PUTOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend) | |
| + | |||
| + | *<math>UnderlyingPrice</math> is the The spot price of the underlying asset of a derivative. | ||
*<math>ExercisePrice</math> is the price at which an underlying security can be purchased or sold. | *<math>ExercisePrice</math> is the price at which an underlying security can be purchased or sold. | ||
*<math>Time</math> is the period. | *<math>Time</math> is the period. | ||
Revision as of 17:28, 4 January 2018
PUTOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)
where
- is the spot price
- is the price at which an underlying security can be purchased or sold.
is the spot price
is the price at which an underlying security can be purchased or sold.PUTOPTION() gives the values of Put Option function.
Description
PUTOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)
- is the 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.
- A put option is an option contract giving the owner the right, but not the obligation, to sell a specified amount of an underlying security at a specified price within a specified time.
- This is the opposite of a call option, which gives the holder the right to buy shares.
- A put option becomes more valuable as the price of the underlying stock depreciates relative to the strike price.The value of a put option decreases due to time decay, because the probability of the stock falling below the specified strike price decreases.
- When an option loses its time value, the intrinsic value is left over, which is equivalent to the difference between the strike price less the stock price.
- Out-of-the-money and at-the-money put options have an intrinsic value of zero because there would be no benefit of exercising the option.
is the period.