Options Price Calculator (Black-Scholes)
Inputs: spot, strike, time, volatility, risk-free rate. Output is a theoretical fair value.
Theoretical Price
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Frequently Asked Questions
Is Black-Scholes accurate?
It is a theoretical model assuming constant volatility and European exercise. Real markets show "volatility smiles" it cannot capture.
Why does it only price European options?
The formula assumes exercise only at expiry. American options (exercisable early) need numerical methods like binomial trees.
What is volatility here?
Implied or historical annualized standard deviation of the underlying return, expressed as a percent.
Worked Examples
ATM call, 20% vol, 1y
A $100/$100 call with 20% vol and 4% rate ≈ $9.47.
Deep ITM put
A $100 spot vs $105 strike put is mostly intrinsic value plus a small time premium.
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⚠️ Disclaimer
Educational tool only. Outputs are illustrative estimates, not financial advice. Investing involves risk including loss of capital.