OPT_BAW_AMER

OPT_BAW_AMER theoretical price of an option according to the Barone Adesie & Whaley approximation

Synopsis

OPT_BAW_AMER(call_put_flag,spot,strike,time,rate,cost_of_carry,volatility)

Arguments

call_put_flag: 'c' for a call and 'p' for a put

spot: spot price

strike: strike price

time: time to maturity in days

rate: annualized risk-free interest rate

cost_of_carry: net cost of holding the underlying asset

volatility: annualized volatility of the asset