opt_black_approx
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Prototype

Function opt_black_approx(dividends As Variant,
divs_t As Variant,
S As Double,
X As Double,
sigma As Double,
opt_mat As Double,
r As Double) As Variant

Description

This function uses Black's method to calculate the value of an American call option on a
stock that pays cash dividends.

Arguments

dividends - Variant (containing a single column of Double values) : The value of the cash dividends.

divs_t - Variant (containing a single column of Double values) : The time (in years) when the dividends are paid.

S - Double : The current value of the stock.

X - Double : The strike price.

sigma - Double : The volatility of the stock.

opt_mat - Double : The option maturity in years.

r - Double : The continuously compounded interest rate.

Returned Values

The option value is returned.

Other Information



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