# Options calculator. Black-Scholes Option Price Calculator

Add, Subtract, Multiply, Divide What is the value of a call or put option? A Call option represents the right but not the requirement to purchase a set number of shares of stock at a pre-determined 'strike price' before the option reaches its expiration date.

### HOW TO CALCULATE POTENTIAL PROFITS FOR OPTIONS CONTRACTS

A call option is purchased in hopes that the underlying stock price will rise well above the strike price, at which point you may choose to exercise the option.

Exercising options calculator call option is options calculator financial equivalent of simultaneously purchasing the shares at the strike price and immediately selling them at the now higher market price.

A Put option represents the right but not the requirement to sell a set number of shares of stock which you do not yet own at a pre-determined 'strike price' before the option reaches options calculator expiration date.

A put option is purchased in hopes that the underlying stock price will drop well below the strike price, at which point you may choose to exercise the option.

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The calculations provided should not be construed as financial, legal or tax advice. In addition, such information should not be relied upon as the only source of information.

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Past performance does not guarantee nor indicate future results.