Merton Option Pricing Calculator – Excel Template

Ivan Kitov
Ivan Kitov

The Merton model estimates the theoretical value of European call and put options while considering dividends paid out during the option’s life. You can use the Merton option pricing 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
  • Dividend yield

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—Black-Scholes Option Pricing Model: Valuing a Put Option, Put-Call Parity: Valuing a Call Option, Options Pricing and Valuation: Binomial Model.