## Evaluating a Put Option Using Black-Scholes Theory

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This page explains the Black-Scholes formulas for d1, d2, call option price, put option european put option formula, and formulas for the most common option Greeks delta, gamma, theta, vega, and rho.

In many resources you can find different symbols for some of these parameters. For example, strike price is often denoted K here I use Xunderlying european put option formula is often denoted S without the zeroand time to expiration is often denoted T — t difference between expiration and now.

Call option C and put option P prices are calculated using the following formulas:. Below you can find formulas for the most commonly used option Greeks. Some of the Greeks gamma and vega are the same for calls and puts. Other Greeks delta, theta, and rho are different. The difference between the formulas for calls and puts are often very small — usually a minus sign here and there. It is very easy to make a mistake. If you want to use the Black-Scholes formulas in Excel and create an option pricing spreadsheet, see detailed guide here:.

Option Greeks Excel Formulas. If you don't agree with any part of this Agreement, please leave the website now. All information is for educational purposes only and may be inaccurate, incomplete, outdated or plain wrong. Macroption is not european put option formula for any damages resulting from using the content. No financial, investment or trading advice is given at any time.

Home Calculators Tutorials About Contact. Tutorial 1 Tutorial 2 Tutorial 3 Tutorial 4. The formulas for d1 and d2 are: In several formulas you can see the term: Delta Gamma Theta … where T is the number of days per year calendar or trading days, depending on what you are using.