Manuals/calci/PUTOPTION

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

• $UnderlyingPrice$ is the spot price
• $ExercisePrice$ is the price at which an underlying security can be purchased or sold.

Description

• This function gives the values of Put Option function.
• In $PUTOPTION(UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)$,$UnderlyingPrice$ is the The spot price of the underlying asset of a derivative.
• $ExercisePrice$ is the price at which an underlying security can be purchased or sold.
• $Time$ 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.

See Also

• OPTIONSECURITY
• IRR
• PV

References

• Put Option

• List of Main Z Functions

• Z3 home