Black-Scholes Option Pricing in Excel

[@toddnoseworthy1447]

Your formula shows that (r+(sigma^2)/2) is multiplied by T. It seems you forgot to do this in the calculation of d1.

[@CosmicBarrilet]

thanks bro, from Argentina...usefull for a just starter here...!!

[@mff812]

Very nicely explained Thank you

[@edkalrio]

N(-d1) = 1-N(d1)

[@jameswebb3064]

Great video, thank you!

[@HarmohanIndia]

thanks from india "sir"

[@scientificapproach6578]

Is is possible to calculate the option Greeks, with just the following inputs: Interest rate, underlying price, strike price, time to exp, option price? If it is possible can you please make a video showing how to do this in Excel. Thank you in advance! The reason I would really like this is because my different trading brokers all display the same option prices but their Greeks are different.

[@taktischekartoffel]

Why did you leave off the multiplication of T off the D1 equation?

[@QuantPy]

Good pick up Kartoffel, check out the video description

[@taktischekartoffel]

@@QuantPy all good. Just saw that. 👌

[@KPSoundCo]

So what exactly should be changed , what should the equation look like?? Thanks for this

[@devez7]

He’s a noob

[@amirisma7972]

If I want to do that for a crypto which r to use

[@puneethgb9789]

how did u get the graph

[@dmitrikochubei3569]

THANK YOU!

[@puneethgb9789]

why am i getting negative price for call option

[@963seeker]

Great video, Just curious do you need to have an MS or PhD in order to calculate or understand these complex equations? Were you self taught? I love the combination of statistics and programming but I find that my math is limiting, although I do have a undergrad degree in STEM which helps a bit. I love the field of quant but I understand that I need to understand the core principles of these models before automating them through the use of code, in case of unforeseen errors. Any helpful tips or advice is greatly appreciated. Thank you!

[@srujan00]

This is taught in undergrad finance courses

[@beckhamtevez1399]

Hi Strong Woman, not sure if this will give you an answer but i am 19, no undergrad/ any degree. I taught myself options and everything about them including this.

[@Antondmt1]

@@srujan00 my undergrad literally told us this exists but we won’t cover it because it’s very complicating 💀

[@srujan00]

@@Antondmt1 it's used by actuaries and in the actuary exams, and people doing the CFA exams.

[@nguyenchuyen2477]

why mean = 0 and stdev = 1? stdev caculated in volatility

[@QuantPy]

Because the the black-scholes formula requires the cumulative standard normal probability distribution function.

[@nguyenchuyen2477]

@@QuantPy Thank u

[@Math4Pears-u2p]

Noice work

[@imrankayani5569]

On nominator "T" is not multiplied

[@SarangMadhani]

Brillant

[@vargasss]

Your d1 calculation does not match with the formula