Option Trading Workbook is an option pricing spreadsheet that allows you to price European call and put options. It calculates theoretical price and option Greek derivatives of call and put options by using Black and Scholes. The Black and Scholes is the foundation model for pricing options today. Five key components including Exercise Price, Time to Expiry, Underlying Price, Interest Rates and Volatility are needed to correctly calculate a theoretical price for an option contract.
The program incorporates strategy simulation worksheet to allow a user to enter up to 10 different option/stock leg combinations. This combination is then graphed to display expected profit and loss on the expiration date. The option strategy graphs included in the spreadsheet are only two-dimensional. Graph also shows expected payoffs and combined option Greeks for the strategy at expiration. The Black and Scholes code used in the spreadsheet is now fully disclosed and you can edit using the Visual Basic Editor.