# BachelierPrice: Calculate Bachelier model option price In FER: Financial Engineering in R

## Description

Calculate Bachelier model option price

## Usage

 ``` 1 2 3 4 5 6 7 8 9 10 11``` ```BachelierPrice( strike = forward, spot, texp = 1, sigma, intr = 0, divr = 0, cp = 1L, forward = spot * exp(-divr * texp)/df, df = exp(-intr * texp) ) ```

## Arguments

 `strike` (vector of) strike price `spot` (vector of) spot price `texp` (vector of) time to expiry `sigma` (vector of) volatility `intr` interest rate (domestic interest rate) `divr` dividend/convenience yield (foreign interest rate) `cp` call/put sign. `1` for call, `-1` for put. `forward` forward price. If given, `forward` overrides `spot` `df` discount factor. If given, `df` overrides `intr`

option price

## References

Choi, J., Kim, K., & Kwak, M. (2009). Numerical Approximation of the Implied Volatility Under Arithmetic Brownian Motion. Applied Mathematical Finance, 16(3), 261-268. doi: 10.1080/13504860802583436

`BachelierImpvol`
 ```1 2 3 4 5 6``` ```spot <- 100 strike <- seq(80,125,5) texp <- 1.2 sigma <- 20 intr <- 0.05 FER::BachelierPrice(strike, spot, texp, sigma, intr=intr) ```