Model — @RISK Developer's Kit

A European option on a stock gives the owner of the option the right to buy or sell for a particular price one share of a stock on a particular date. This example uses simulation to determine a fair price for an option, given uncertain stock prices.

User Inputs	Value
Current Stock Price ($):
Exercise Price ($):
Mean Annual Growth Rate (%):
Annual Volatility (%):
Risk-Free Rate (%):
Option Duration (yr):