Instructions
-
spot price:
the underlying asset spot price.
-
volatility:
the underlying asset volatility ( %).
-
excercise price:the
option strike price.
-
free-risk rate:
the interest rate of free-risk assets.
-
option type:
call or put.
-
excercise type:
european or american.
-
number of periods:
number of periods of the binomial tree. It is advised a number >= 30, but
less than 100 (otherwise the computations could be too slow).
-
dividend:
fill in this variable only if the underlying asset is an equity and a dividend
is given between the date of evaluation and the date of maturity. If
there is not any dividend, this field must be always equal to '0' otherwise
the applet sends an error message !!!!
-
dividend date:
It
must be always: month/day/year !!!!!
-
underlying asset:
the option underlying asset. It can be an equity, a currency, an
index.
-
dividend yield:
if the underlying asset is an index, fill in the index dividend yield,
if it is a currency, fill in the free-risk rate of that currency.
-
evaluation date:
the date when you want to evaluate the option (usually today's date, but
it is left the possibility to choose another one). It
must be always: month/day/year !!!!!
-
date of maturity
: the option date of maturity. It must
be always: month/day/year !!!!!
-
market value:
it is the option real market value. It is used to calculate the implied
volatility.