Description Usage Arguments Details Examples

The famous Black-Scholes Option Pricing Formula based on the Lognormal Models. This formula can be extended to barrier options, currency options, options on futures, etc.

1 | ```
blackScholes(S, K, r, T, sigma)
``` |

`S` |
The Stock Price |

`K` |
The Strike Price |

`r` |
The risk-free continuously compounded interest rate |

`T` |
The expiration date |

`sigma` |
The volatility |

The Black-Scholes Formula is based on the assumption of geometric brownian motion and can be shown to satisfy the Black-Scholes Partial Differential Equation. It can be thought of as the combination of an asset-or-nothing option and a cash-or-nothing option

1 | ```
blackScholes(S=41,K=40,r=0.08,T=1,sigma=0.3)
``` |

m4fe documentation built on May 29, 2017, 9:40 p.m.

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