days

%

%

## Black Scholes formula

C = SPe^{-dt}N(d_{1}) - STe^{-rt}N(d_{2})

P = STe^{-rt}N(-d_{2}) - SPe^{-dt}N(-d_{1})

Where

C is the value of the call option

P is the value of the put option

N (.) is the cumulative standard normal distribution function

SP is the current stock price (spot price)

ST is the strike price (exercise price)

e is the exponential constant (2.7182818)

ln is the natural logarithm

r is the current risk-free interest rate

t is the time to expiration in days

European Call Value

A call option allows the holder to buy shares of stock at the strike price in the future.

European Put Value

A put option allows the holder to sell shares of stock at the strike price in the future.