HP 113394 User Guide - Page 199

Section 13: Investment Analysis 199 KEYSTROKES (RPN mode) DISPLAY KEYSTROKES (ALG mode) DISPLAY } 113, 36 ?+4 114,44 40 4 :4 ~ 115, 116, 45 4 34 ?5 117, 44 5 g(000 fs 118,43,33, 000 n: Term to expiry FV: Strike price R3: N(d1) R7-R.9: Unused REGISTERS i: Interest rate (%) PV: Stock price R0: Unused R4: Put value R1: Unused R5: Call value PMT: Volatility (%) R2: Unused R6: QxN(d2) Note: The n, i and PMT values must all be based on the same time unit (for example: n is measured in years or months and i and PMT are rates per year or per month). i is a continuous percentage rate. PMT is the standard deviation of the continuous percentage stock return (as observed over the time unit). For sensible output, all inputs should be positive. The PMT=0 case can be simulated by using a PMT arbitrarily close to 0. Program Instructions 1. Key in the program. 2. Enter the five inputs into the five financial registers. These values are preserved by the program. a. Key in the unexpired term of the option and press n. b. Key in the risk-free interest rate as a percentage and press ¼. c. Key in the current (or spot) stock price and press $. d. Key in the volatility assumption as a percentage and press P. e. Key in the strike price and press M. 3. Press t. The Call value is displayed. Press ~ to see the Put value. File name: hp 12c pt_user's guide_English_HDPMF123E27 Page: 199 of 275 Printed Date: 2005/8/1 Dimension: 14.8 cm x 21 cm