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Options Pricing Lab
Black-Scholes-Merton Model + Greeks
The Concept
The Black-Scholes model prices options by computing the probability-weighted expected payoff under risk-neutral assumptions. It takes five inputs — stock price, strike price, time, risk-free rate, and volatility — and outputs a fair price. The Greeks measure how sensitive that price is to each input. This is the foundation of every options desk on Wall Street.
Parameters
$100
$100
0.25 yr (91d)
0.25 (25%)
0.050 (5.00%)
Quick Presets
