I am looking to program the Black Scholes model, but I don't understand how to write this equation as basic math.
- Equation => http://en.wikipedia.org/wiki/Black%E2%80%93Scholes
- Known inputs => https://www.xignite.com/xRealTimeOptions.asmx?op=GetBlackScholesOptionValue
Example values
- Type: Put
- StockPrice: 19
- StrikePrice: 20
- YearsToMaturity: 0.16
- RiskFreeRate: 0.10
- Volatility: 0.60
I can get all of these inputs, but I just need to program the basic calculation, like (these are just made up numbers and equations)
f = a + (b/c);
f * f = z;
z / 3 + ( f * a ) = m;m is the answer.