European Option Calculator

An option is a contract that gives the owner the right to buy (a call option) or the right to sell (a put option) a security at a stated price. This stated price is known as the "strike price". An equity option is a contract to buy or sell shares of stock. Option contracts have an expiration date. That is, the owner of the contract can only exercise his option to buy or sell the underlying security before or on the contract's expiration date.

European style options can be exercised only on the expiration date. (See American Option Calculator for options that can be exercised at any time.)

SolveIT!'s option pricing calculator can be used to calculate the call price, put price, gamma, delta, theta, and vega. The implied volatility can be calculated with data seamlessly imported from Yahoo Finance. The calculator gives you the option to select from two pricing model, either Black-Scholes Option price or the Binomial European.

You may see the screen shot for other details about this calculator by passing your mouse over the screen image to the upper right.