Introduction to the Options Pricing Submenu

This set of features is for composing hypothetical outcomes through user-defined inputs. There are two columns of inputs:

  • price - the price for the underlying at the close on expiration.
  • probability - the statistical probability of the outcome, where 1 = 100% & probability always = 1.

The Pricing submenu is accessible after selecting an expiration date for the options chain. Type, pricing, and press enter for access.

The Options Pricing Submenu

How to use the Pricing Submenu

Use the add command to build the list, and use the rmv command to take away any entries.

Add and remove

show will print a table of the inputs. Multiple price points can be added, assuming that probability always sums at 100%.

Calculated outputs for calls

Examples

Adding the optional argument, -p, will calculate the puts in the chain.

Calculating for puts

Removing the risk-free rate variable makes a substantial difference to the calculated value of an option. With monetary policy on the move, this is an important variable to consider as financial conditions change.

Puts calculations with RFR = 0

RFR as 0 for call options

RFR as 0 for call options

Back to Introduction to the Options Menu