ERI's Black-Scholes Calculator

Input Data

US $ Example: "25.00"
US $ Example: "15.00"
Years Example: "3.5"
Annual % Example: ".05" (for 5%)
Annual % Example: ".20" (for 20%)
Clear Fields

Options (Fair Value)

US $
US $

Executive Compensation Planning and Analysis Made Easy
Learn More

Disclaimer: This Black-Scholes Calculator is not intended as a basis for trading decisions. No responsibility whatsoever is assumed for its correctness or suitability for any given purpose. Use at your own risk.

Provided by ERI Economic Research Institute – Your research outsource for salary survey, cost-of-living and executive compensation survey data.

To learn more about how to use the Black-Scholes method to place a value on stock options, please see the ERI Distance Learning Center online course Black-Scholes Valuations.

Relevant Black Scholes Definitions (all values are per share)
Black Scholes The Black Scholes Option Pricing Model determines the fair market value of European options but may also be used to value American options*. The actual formula can be viewed here.
Stock Asset Price A stock's current price, publicly traded or estimated.
Option Strike Price Predetermined price (by the option writer) at which an option's stock is purchased or sold.
Maturity (Time Until Expiration) * Time remaining to the option expiration date.
Risk-Free Interest Rate Current interest rate of short-dated government bonds such as US Treasury bills.
Volatility Degree of unpredictable change over time of an option's stock price often expressed as the standard deviation of the stock price.
European Call * $US fair market value of an option exercised at expiration. A call option gives the buyer (the option holder) the right to purchase stocks from the seller (the option writer) at the strike price.
European Put * $US fair market value of an option exercised at expiration. A put option gives the buyer (the option holder) the right to sell the purchased stocks to the writer of the option at the strike price.
* A European option can only be exercised on the expiration date. An American option may be exercised at any time during the life of the option. However, in most cases, it is acceptable to value an American option using the Black Scholes Model because American options are rarely exercised before the expiration date.