📈 Call Option Calculator
Compute theoretical call price from spot, strike, rate, yield, volatility, and time.
Call Price
10.4506
d1
0.3500
d2
0.1500
How to Use This Calculator
Fill in the current underlying price, the strike, risk‑free rate, dividend yield (use 0 if none), volatility, and time to expiration in years. The output is the theoretical price of a European call option using the Black–Scholes–Merton model. Traders use this result to benchmark quotes, convert prices to implied volatilities, and understand how parameters such as time and volatility change valuation. If you need put prices or parity checks, try the Black–Scholes and Put‑Call Parity tools.
Formula
C = S e^(-qT) N(d₁) − K e^(-rT) N(d₂)
d₁ = [ln(S/K) + (r − q + ½σ²)T] / (σ√T), d₂ = d₁ − σ√T
About Call Option Calculator
This tool focuses on the European call price, isolating the most commonly referenced leg in equity and index options. It’s useful when you want a quick, interpretable fair value without constructing an entire options surface. The calculator is built around a clear set of assumptions: constant volatility, continuous compounding, and frictionless markets. While reality is more nuanced, the model remains a powerful baseline for comparing contracts and sanity‑checking quotes across expiries and strikes.
Frequently Asked Questions
Why does dividend yield reduce call value?
Expected dividends lower the present value of future ownership, making calls less valuable than on a non‑dividend‑paying asset. The model accounts for this via the e^(-qT) term on S.
Can I use this for American calls?
For non‑dividend‑paying underlyings, American and European call values coincide. With dividends, early exercise may have value and the formula becomes an approximation.