HP 12C Platinum User Manual page 204

204 Section 13: Investment Analysis
Example 2: The stock price six months from the expiration of an option is $42,
the exercise price of the option is $40, the risk-free interest rate is 10% per annum,
and the volatility is 20% per annum. Find Call and Put values.
Keystrokes Keystrokes
(RPN mode) (ALG mode)
f] f[
.5n .5n
10¼ 10¼
42$ 42$
20P 20P
40M 40M
t t
~ ~
Display
Time to expiry (years).
0.50
Interest rate (% per year).
10.00
Stock price.
42.00
Volatility (% per year).
20.00
Strike price.
40.00
Call value.
4.76
Put value.
0.81