Options and futures are leveraged contracts whose value depends on an underlying price, time and volatility. These derivatives calculators price options, show the Greeks and compute profit and loss before you trade.
Options & Derivatives calculators (9)
- Black Scholes Calculator
- Call Option Calculator
- Options Spread Calculator
- Put-Call Parity Calculator
- Forward Rate Calculator
- Forward Premium Calculator
- Futures Contracts Calculator
- Margin Call Calculator
- Option Greeks Calculator
About Options & Derivatives calculators
The Black-Scholes-Merton model prices European options from the stock price, strike, time, rate, dividend yield and volatility. Delta, gamma and vega show how the price responds to the stock, to delta itself and to volatility. Put-call parity links call and put prices and is a quick check on quotes.
Payoff tools handle a long call, a bull call spread, futures contracts, forward rates, currency forward premiums and margin-call prices. Always remember that derivatives amplify losses as well as gains.
Understanding option pricing
The Black Scholes Calculator needs six inputs: stock price, strike, time to expiry, risk-free rate, dividend yield and volatility. Volatility has the biggest effect and is the one you must estimate. Use the Greeks calculator to see how the price will move before expiry.
Before a trade, compute the payoff. The Call Option Calculator and Options Spread Calculator show break-even and maximum loss, and the Margin Call Calculator shows how far a stock can fall in a margin account before a call.
- Parity. Put-call parity checks that call and put quotes agree with the stock and the interest rate.
- Futures and forwards. Futures P&L, forward rates and forward premium convert price moves into dollars.
What you can calculate
- Black Scholes Calculator: Price European call and put options and see the main Greeks.
- Call Option Calculator: Compute profit, break-even and return for a long call option.
- Options Spread Calculator: Analyze a bull call spread: max profit, max loss and break-even.
- Put-Call Parity Calculator: Check whether call and put prices are consistent with parity.
- Forward Rate Calculator: Derive the forward interest rate between two future dates from spot rates.
- Forward Premium Calculator: Annualized forward premium or discount between two currencies.
- Futures Contracts Calculator: Compute profit and loss on a futures position from price moves.
- Margin Call Calculator: Find the price at which a margin account triggers a margin call.
- Option Greeks Calculator: Show delta, gamma and vega for a call or put using Black-Scholes.
Frequently asked questions
Which option model is used?
The Black-Scholes-Merton model for European options, with an optional dividend yield. American options can be worth more.
Can I lose more than I invest?
Buying options risks only the premium, but selling uncovered options or trading futures can lose far more than the margin posted.
What do the Greeks mean?
Delta is price sensitivity to the stock, gamma is the change in delta, and vega is sensitivity to volatility.
Does Black-Scholes work for American options?
It prices European options. American options can be exercised early and may be worth slightly more.