HP 113394 User Guide - Page 194

194 Section 13: Investment Analysis Black-Scholes Formula for Valuing European Options This program implements the Black-Scholes formula which has been used extensively in option markets worldwide since its publication in the early 1970's. The five inputs are simply keyed into the five financial variables and then t displays the call option value, and ~ shows the put option value. The option values produced are accurate to at least the nearest cent for asset and strike prices under $100. Reference: Tony Hutchins, 2003, Black-Scholes takes over the HP12C, HPCC (www.hpcc.org) Datafile, V22, N3, pp13-21. KEYSTROKES (RPN mode) DISPLAY KEYSTROKES (ALG mode) DISPLAY fs fs fCLEARÎ :n :¼ b Þ g> :M § ?4 ~ gr :P b ?3 :$ :4 z 000, 001, 002, 003, 004, 005, 006, 007, 008, 009, 010, 011, 012, 013, 014, 015, 016, fCLEARÎ 000, 45 11 :n 001, 45 12 § 002, 25 :¼ 003, 16 b 004, 43 22 } 005, 45 15 Þ 006, 20 g> 007, 44 4 § 008, 34 :M 009, 43 21 } 010, 45 14 ?4 011, 25 :n 012, 44 3 gr 013, 45 13 § 014, 45 4 :P 015, 10 b 016, 45 11 20 45 12 25 36 16 43 22 20 45 15 36 44 4 45 11 43 21 20 45 14 25 File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 194 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm