PUTOPTION (UnderlyingPrice,ExercisePrice,Time,Interest,Volatility,Dividend)
- 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.
Description
- This function gives the values of Put Option function.
- In , 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.
