# BS_call

From DtD v0.2.1
by Benjamin Christoffersen

##### 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.

##### See Also

##### 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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