HP 12C User Manual page 201

Example 2: The stock price six months from the expiration of an option is $42,
the exercise price of the option is $40, the risk-free interest rate is 10% per annum,
and the volatility is 20% per annum. Find Call and Put values.
Keystrokes
(RPN mode)
f]
.5n
10¼
42$
20P
40M
t
~
File name: hp 12c pt_user's guide_English_HDPMF123E27
Printed Date: 2005/8/1
Section 13: Investment Analysis
Keystrokes
Display
(ALG mode)
f[
0.50
.5n
10.00
10¼
42.00
42$
20.00
20P
40.00
40M
t
4.76
~
0.81
Page: 201 of 275
Dimension: 14.8 cm x 21 cm
201
Time to expiry (years).
Interest rate (% per year).
Stock price.
Volatility (% per year).
Strike price.
Call value.
Put value.