ExecutionModel

Black–Scholes Option Pricer (Educational)

Educational Black–Scholes European call and put values with Greeks (delta, gamma, theta, vega, rho) — assumes continuous dividend yield.

Call and putGreeksDividend yield

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Educational Black–Scholes–Merton

Closed-form pricing assumes log-normal returns, constant volatility and rate, no jumps, and frictionless markets. Real markets violate these assumptions. This is not trading, valuation, or accounting advice.

Inputs

European call & put (continuous yield)

Continuous dividend yield q enters d1/d2 in the standard Merton extension; toggle it in advanced mode.

Advanced mode

Continuous dividend / carry yield on the underlying.

Outputs

Model prices

Call value

10.94

Put value

6.54

d1

0.3145

d2

0.0945

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Perspective

Models assume frictionless markets

Real markets have bid-ask spreads, discrete dividends, early exercise for Americans, and volatility smiles.

Use for learning; never as the sole basis for trades.

FAQ

Common questions

European vs American?

Black–Scholes here is European (no early exercise). American options may be worth more.

What units for time and volatility?

Time in years (e.g. 0.25 = 3 months); volatility as annualized decimal (e.g. 0.20 for 20%).

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