This application allows you to calculate the price and Greeks of financial options using different models like Black-Scholes, Monte Carlo, and Binomial Tree methods.
Explore the functionality of the application by trying out the calculator or learning more about each pricing model in the documentation section.
Go to Calculator Learn More in DocumentationOption pricing is the process of determining the fair value of an option based on factors such as the stock price, strike price, time to expiration, risk-free rate, volatility, and more. This application helps you compute these values using different mathematical models.
The Black-Scholes model is a widely used analytical method for calculating the theoretical price of European-style options. It relies on several assumptions, including constant volatility and no dividends during the option's life.
The Monte Carlo method uses random sampling and statistical modeling to simulate different outcomes in order to compute the price of options. This approach can handle more complex scenarios than Black-Scholes.
The Binomial Tree model breaks down the option price into multiple time periods, modeling possible movements in the underlying stock price at each step. This model is flexible and can handle American-style options.
Whether you're a student, trader, or financial professional, this tool offers an easy-to-use interface to quickly calculate option prices and Greeks, helping you make more informed decisions.
To begin, simply navigate to the calculator, input the required data, and choose your preferred option pricing method. You can also dive into the documentation to learn more about each model.