📖How to Use the Black-Scholes Calculator
1Enter Underlying Information
Input the current asset price (S), the option strike price (K), and time to expiration (T in years). Example: 30 days = 30/365 ≈ 0.082.
2Enter Market Parameters
Input the risk-free rate (e.g., 3-month T-bill yield) and the implied or historical volatility of the underlying asset.
3Interpret the Greeks
Delta: Option price change per $1 move in the underlying. Gamma: Rate of change of Delta. Theta: Daily time decay. Vega: Sensitivity to volatility changes.