Manuals/calci/CALLOPTION

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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

See Also


References