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