HP 12C Financial 12C 113, ?+4, 115, 116, 117, 114,44, 118,43,33, Program Instructions

		Section 13: Investment Analysis					199
KEYSTROKES	DISPLAY		KEYSTROKES		DISPLAY
(RPN mode)			(ALG mode)
			}	113,			36
			?+4	114,44		40	4
			:4	115,		45	4
			~	116,			34
			?5	117,		44	5
			g(000	118,43,33, 000
			fs
	REGISTERS
n: Term to expiry	i: Interest rate (%)		PV: Stock price		PMT: Volatility (%)
FV: Strike price	R0: Unused		R1: Unused		R2: Unused
R3: N(d1)	R4: Put value		R5: Call value		R6: QxN(d2)
R7-R.9: Unused

Note: The n, i and PMT values must all be based on the same time unit (for

example: n is measured in years or months and i and PMT are rates per year or per month). i is a continuous percentage rate. PMT is the standard deviation of the continuous percentage stock return (as observed over the time unit). For sensible output, all inputs should be positive. The PMT=0 case can be simulated by using a PMT arbitrarily close to 0.

Program Instructions

1.Key in the program.

2.Enter the five inputs into the five financial registers. These values are preserved by the program.

a.Key in the unexpired term of the option and press n.

b.Key in the risk-free interest rate as a percentage and press ¼.

c.Key in the current (or spot) stock price and press $.

d.Key in the volatility assumption as a percentage and press P.

e.Key in the strike price and press M.

3.Press t. The Call value is displayed. Press ~to see the Put value.

File name: hp 12c pt_user's guide_English_HDPMF123E27	Page: 199 of 275
Printed Date: 2005/8/1	Dimension: 14.8 cm x 21 cm