Black Scholes Calculator
Calculate option prices using our BlackScholes Calculator. Accurately price stock options with ease. Try our free calculator now and make informed investment decisions.
BlackScholes Formula
The BlackScholes formula is a mathematical model used to calculate the theoretical value of Europeanstyle stock options, assuming that the underlying stock prices follow a lognormal distribution with constant volatility and that there are no transaction costs or taxes.
The formula takes into account six variables: the current stock price, the option strike price, the time until expiration, the riskfree interest rate, the implied volatility of the stock price, and the dividend yield of the stock.
The formula is as follows:
S = current stock price K = option strike price t = time until expiration (in years) r = riskfree interest rate σ = implied volatility q = dividend yield d1 = (ln(S/K) + (r  q + σ²/2)t) / (σ * √t) d2 = d1  σ * √t Call option price = S * e^(q*t) * N(d1)  K * e^(r*t) * N(d2) Put option price = K * e^(r*t) * N(d2)  S * e^(q*t) * N(d1)
Where N() is the standard normal cumulative distribution function.

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