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Valuation of options | Free template

Valuation of options is a free template for option pricing and to calculate an options value. Options are derivative instruments which derive its value from an underlying asset.

With this model for valuation of options, you can calculate an option value using the Black & Scholes model for option pricing. With this option calculator, it is possible to calculate the theoretical value of multiple options simultaneously. To calculate an option value, it is necessary to know the underlying asset's volatility. The model for valuation of options can calculate option values for both put options and call options.

Option pricing is not only to calculate an options value but also to calculate other key figures such as delta, gamma, vega and theta. These ratios can be very useful when dealing with options and help you as an investor to take various positions, which combines various options and stocks.

It is much more risk to trade in options compared to buying the stocks. In options there is a real value and a time value and the time value decreases as time passes. When the date of exercise occurs the time value is zero and there is only a real value for the option, then it is important for those who bought a call option that the stock price is higher than the exercise price.

Options/warrants can be bought and issued, when you buy an option you have the time value against you and when you issue an option you have time value working with you. The issuing of stock options have a limited profit opportunity, while those who buy options have unlimited profit opportunity.
Updated: 01/01/2015 | Created by

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