# BS_call

0th

Percentile

##### European Call Option Price and the Inverse

Computes the European call option and the inverse. All vectors with length greater than one needs to have the same length.

##### Usage
BS_call(V, D, T., r, vol)get_underlying(S, D, T., r, vol, tol = 1e-12)
##### Arguments
V

numeric vector or scalar with price of the underlying asset.

D

numeric vector or scalar with debt due in T..

T.

numeric vector or scalar with time to maturity.

r

numeric vector or scalar with risk free rates.

vol

numeric vector or scalar with volatilities, $\sigma$s.

S

numeric vector with observed stock prices.

tol

numeric scalar with tolerance to get_underlying. The difference is scaled if the absolute of S is large than tol as in the tolerance argument to all.equal.numeric.

##### Value

Numeric vector or scalar with price of the underlying asset or equity price.

BS_fit

##### Aliases
• BS_call
• get_underlying
##### Examples
# NOT RUN {
library(DtD)
set.seed(58661382)
sims <- BS_sim(
vol = .2, mu = .03, dt = .1, V_0 = 100, T. = 1, D = rep(80, 20), r = .01)

stopifnot(with(
sims, isTRUE(all.equal(V, get_underlying(S, D, T, r, vol)))))
stopifnot(with(
sims, isTRUE(all.equal(S, BS_call(V, D, T, r, vol)))))

# }

Documentation reproduced from package DtD, version 0.2.1, License: GPL-2

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