call.premium.est {roptions}

Estimated Premium of Option Contract

Description

Calculate the Estimated Premium of Option Contract

Usage

call.premium.est(s, k, t, sd, r, d = 0)

Arguments

s

Spot Price of Underlying Asset

k

Exercise Price of Contract

t

Time to Expiration

sd

Volatality

r

Risk free rate of return

d

Divident Yield (use cont.rate()), Default: 0

Details

Estimate is calculated based on Black-Scholes Model. The Black Scholes model, also known as the Black-Scholes-Merton (BSM) model, is a mathematical model for pricing an options contract.

Value

Output gives the Estimated Premium of a Option Contract.

Examples

call.premium.est(100, 105, 0.25, 0.35, 0.0488)