Table 7-4 Black-Scholes Example

Keys

Display

Description

 

 

 

=

 

Calculates the standard deviation of the

 

price of the underlying asset based on the

Press <to scroll to the

 

historical data entered in the Data menu.

 

If you have not entered the historical data,

 

next item.

 

 

you can enter the standard deviation of

 

 

 

 

the price of the underlying asset directly

 

 

by typing the number and pressing

 

 

I. Press <to scroll to the

 

 

next item.

 

 

 

=

 

Calculates the average dividend return as

 

a percentage of the underlying asset cost

Press <to scroll to the

 

based on the historical data entered in

 

the Data menu. If you have not entered

 

 

 

next item.

 

the historical data, enter the average

 

 

dividend return as a percentage of the

 

 

underlying asset cost directly by typing

 

 

the number and pressing I.

 

 

 

<

 

Scrolls to Call Price.

 

 

 

 

 

 

 

 

<

 

Scrolls to Put Price.

 

 

 

 

 

 

 

 

To reset the menu items to their default values, with any item of the Black-Scholes menu displayed press :x. With Black-Scholes displayed, press Ito reset the menu, or Oto cancel. Press Oagain to exit the menu.

56 Black-Scholes Calculation Menu*