Black-Scholes Option Pricing Model formulaTrading Indicator: Black-Scholes Option Pricing Model formula Created by: The trader on July 7, 2009. The development of this Technical Analysis trading indicator necessitated 49 lines. The Options trading indicator is called 'BlackScholes' and it is coded using JScript. It requires 6 variables. The different variables are: PutCall (Type: String - Default Value: c): c for call, p for put Price (Type: Number - Default Value: 0): Security price Strike (Type: Number - Default Value: 0): Strike price YTM (Type: Number - Default Value: 0): Years to maturity RFR (Type: Number - Default Value: 0): Risk-free rate Volatility (Type: Number - Default Value: 0): Volatility Example: p = BlackScholes("c", 0, 0, 0, 0, 0); Formula to show the function on a chart: Plot(BlackScholes("c", 0, 0, 0, 0, 0), "Black-Scholes Option Pricing Model formula", colorRed); Future and Past Bars: The method has no look-ahead bias. It needs no past bars. Click on this link to download Black-Scholes Option Pricing Model formula Search terms used to find this trading item include black scholes option pricing model, software that uses Black-Scholes models, black scholes indicators, six parameter of black scholes model, black scholes option software The trading object is saved under the following categories: Technical Analysis - Options Market |
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