Black Scholes Calculator

Our easy to use Black Scholes Calculator lets you determine the price of a European call option. The Black-Scholes option pricing model was invented by two men named Fischer Black and Myron S. Scholes in 1973, shortly after the opening of the first US option exchange board in Chicago. Other researchers like Robert C. Merton were also involved in the derivation and refinement of the black scholes option pricing model. It is therefore sometimes referred to as the Black-Scholes-Merton model.

Current price of underlying (i.e. stock):
Strike price:
Remaining time (in years):
Fixed yearly interest rate (%):
standard deviation (volatility) of underlying return rate (%):

Price of European Call Option:

Our Black Scholes Option Calculator default values show an example for a European call option based on stock currently priced at $100. Its strike price is $120, which means that the underlying stock can be bought for $120 on the options expiry date.

Our option's expiry date in our example is exactly 2 years from today. If the market price of our underlying stock happens to be above $120 in 2 years from now a profit can be made. The option holder has the right or the "option" to buy the stock for the agreed price (strike price) and sell it on the market for the market price.

Two other variables influence the outcome of our Black Scholes Calculator, the interest rate which in our model is assumed to be 5%, and the volatility of the underlying which is assumed to be 20%.

Adjust the values in the above Black Scholes option calculator as needed to perfom your own calculation, the values for all five fields have to be supplied in order to calculate the option's price (value).

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