The Black-Scholes model estimates the theoretical value of a European call and put options whose ultimate value depends on the price of the stock at the expiration date. You can use the Black-Scholes calculator to determine the fair market value of a European call or put option, using the five primary components of options pricing:
- Option’s strike price
- Risk-free rate
- Stock’s current price
- Time to expiration
- Standard deviation of stock returns
This open-access Excel template is a useful tool for statisticians, financial analysts, data analysts, and portfolio managers. Gain valuable insights into the subject with our Derivatives course.
You can also explore other related templates such as—Merton Option Pricing Calculator, Put-Call Parity: Valuing a Call Option, Options Pricing and Valuation: Binomial Model.