HP 12C Platinum User Manual page 202

202 Section 13: Investment Analysis
KEYSTROKES
(RPN mode)
n: Term to expiry
FV: Strike price
R : N(d )
3 1
R -R : Unused
7 .9
Note:
The n, i and PMT values must all be based on the same time unit (for
example: n is measured in years or months and i and PMT are rates per year
or per month). i is a continuous percentage rate. PMT is the standard
deviation of the continuous percentage stock return (as observed over the
time unit). For sensible output, all inputs should be positive. The PMT=0 case
can be simulated by using a PMT arbitrarily close to 0.
Program Instructions
1. Key in the program.
2. Enter the five inputs into the five financial registers. These values are
preserved by the program.
a. Key in the unexpired term of the option and press n.
b. Key in the risk-free interest rate as a percentage and press ¼.
c. Key in the current (or spot) stock price and press $.
d. Key in the volatility assumption as a percentage and press P.
e. Key in the strike price and press M.
3. Press t. The Call value is displayed. Press ~ to see the Put value.
KEYSTROKES
DISPLAY
(ALG mode)
}
?+4
:4
~
?5
g(000
fs
REGISTERS
i: Interest rate (%) PV: Stock price
R Unused R
0:
R : Put value R
4
113,
114,44 40
115,
116,
117,
118,43,33, 000
PMT: Volatility (%)
: Unused R
1 2
: Call value R
5 6
DISPLAY
36
4
45 4
34
44 5
: Unused
: QxN(d )
2