Options Premium Calculator
Calculate theoretical option prices using the Black-Scholes option pricing model.
Options Premium Calculator
About Black-Scholes Formula
The Black-Scholes model is a mathematical formula used to calculate the theoretical price of European-style options. It considers the following factors:
- Spot Price: Current price of the underlying asset
- Strike Price: Price at which the option can be exercised
- Time to Expiry: Days remaining until option expiration
- Volatility: Annualized standard deviation of returns
- Risk-Free Rate: Current interest rate (typically RBI rate)
This calculator helps traders understand fair option premiums and identify potential arbitrage opportunities.
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