Section 13: Investment Analysis 203
File name: HP 12c Pt Converted_user's guide_English_HDP0F123E02_080207
Page: 201 of 281
Printed Date:
{
2007/8/2Dimension: 14.8 cm x 21 cm
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
(RPN mode)
Keystrokes
(ALG mode)
Display
f]
f[
6
n
6
n
6.00
Time to expiry (months).
.5
¼
.5
¼
0.50
Interest rate (% per
month).
52
$
52
$
52.00
Stock price.
20.54
P
20.54
P
20.54
Volatility (% per month).
45
M
45
M
45.00
Strike price.
t
t
14.22
Call value.
~
~
5.89
Put value.
:gAn
:gAn
0.50
Years to expiry.
:gC¼
:gC¼
6.00
Yearly interest rate %.
:P
12
gr§P
:P§
12
grP
71.15
Yearly volatility %.
t
t
14.22
Call value (unchanged).
:ngA
:ngA
6.00
Months to expiry.
:¼gC
:¼gC
0.50
Monthly interest rate %.
:P
12
grzP
:Pz
12
grP
20.54
Monthly volatility %.
The next example is
Example 12.7
from
Options, Futures, and Other Derivatives
(5th Edition)
by John C. Hull (Prentice Hall, 2002).
Summary of Contents for 12C
Page 1: ...HP 12c Platinum Financial Calculator User s guide H Edition 5 HP part number F2231AA 90001 ...
Page 15: ...Part I Problem Solving ...
Page 48: ...48 Section 3 Basic Financial Functions ...
Page 104: ......
Page 105: ...Part II Programming ...
Page 156: ......
Page 157: ...Part III Solutions ...
Page 230: ......
Page 231: ...Appendices ...
Page 277: ......