# HP 12C Platinum User Manual Page 203

Financial calculator.

Example 1: An option has 6 months to run and a strike price of \$45. Find
Call and Put values assuming a spot price of \$52, return volatility of 20.54% per
month and a risk-free interest rate of 0.5% per month. Show how to change the
time scale of the inputs between monthly and annual values.
Keystrokes
Keystrokes
(RPN mode)
(ALG mode)
f]
f[
6n
6n
.5¼
.5¼
52\$
52\$
20.54P
20.54P
45M
45M
t
t
~
~
:gAn
:gAn
:gC¼
:gC¼
:P
:P§
12gr§P
12grP
t
t
:ngA
:ngA
:¼gC
:¼gC
:P
:Pz
12grzP
12grP
The next example is Example 12.7 from Options, Futures, and Other Derivatives
(5th Edition) by John C. Hull (Prentice Hall, 2002).
Section 13: Investment Analysis
Display
Time to expiry (months).
6.00
Interest rate (% per
0.50
month).
Stock price.
52.00
Volatility (% per month).
20.54
Strike price.
45.00
Call value.
14.22
Put value.
5.89
Years to expiry.
0.50
Yearly interest rate %.
6.00
Yearly volatility %.
71.15
Call value (unchanged).
14.22
Months to expiry.
6.00
Monthly interest rate %.
0.50
Monthly volatility %.
20.54
203