How Do You Create An Options Calculator With Microsoft Excel?
Microsoft Excel is a versatile tool that functions in a variety of environments. Financial applications are particularly well-suited to Excel. Its robust mathematics and spreadsheet format allow the easy manipulation of financial scenarios. Stock options are complicated investment vehicles that are priced according to many variables. The price of an underlying stock is only part of the complex relationship between volatility measurements, time decay and other factors that weight strongly on an options price. Brokerage firms often provide options calculators to their clients to better understand an option trading strategy, but Excel is also capable of handling this task, with some customization. Download an options pricing model add-in for Excel. The program does not offer native support of the complex formulas necessary to price options. An add-in extends the Excel library so anyone can create an options calculator from the necessary functions. A good free option for this add-in is the
