HP 12C Financial 12C manual Black-Scholes Formula for Valuing European Options, RPN mode

194 Section 13: Investment Analysis

Black-Scholes Formula for Valuing European Options

This program implements the Black-Scholes formula which has been used extensively in option markets worldwide since its publication in the early 1970’s. The five inputs are simply keyed into the five financial variables and then t displays the call option value, and ~ shows the put option value. The option values produced are accurate to at least the nearest cent for asset and strike prices under $100.

Reference: Tony Hutchins, 2003, Black-Scholes takes over the HP12C, HPCC (www.hpcc.org) Datafile, V22, N3, pp13-21.

KEYSTROKES	DISPLAY
(RPN mode)
fs
fCLEARÎ	000,
:n	001,	45	11
:¼	002,	45	12
b	003,		25
Þ	004,		16
g>	005,	43	22
:M	006,	45	15
§	007,		20
?4	008,	44	4
~	009,		34
gr	010,	43	21
:P	011,	45	14
b	012,		25
?3	013,	44	3
:$	014,	45	13
:4	015,	45	4
z	016,		10

KEYSTROKES	DISPLAY
(ALG mode)
fs
fCLEARÎ	000,
:n	001,	45	11
§	002,		20
:¼	003,	45	12
b	004,		25
}	005,		36
Þ	006,		16
g>	007,	43	22
§	008,		20
:M	009,	45	15
}	010,		36
?4	011,	44	4
:n	012,	45	11
gr	013,	43	21
§	014,		20
:P	015,	45	14
b	016,		25

File name: hp 12c pt_user's guide_English_HDPMF123E27	Page: 194 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm