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This post describes use of Calculators

Knowledge Base - Net.net 11 | NA

Calculators supports two types of calculators: Options Calculator & Fair Value Calculator. The Options Calculator calculates the output values for different contracts in the Options segment of the Derivatives market. The implied volatility calculates the annualized standard deviation of daily change in price of a contract. Various factors effect implied volatility such as Exercise Price, Rate of Return, Maturity Date, and Option Price.

Fair Value Calculator calculates the fair value of the future contract based on the Interest Rate and Maturity Time.

The following activities are performed using the Calculators:

  • Calculate Output Values using Options Calculator

  • Calculate Implied Volatility using Options Calculator

  • Calculate Fair Value using Fair Value Calculator

Calculate Output Values using Options Calculator

  1. Click Tools > Calculators > Options Calculator.  Alternatively, press Ctrl + Page + Up.  The Options Calculator window is displayed.


  2. Type Spot Price.

  3. Type Strike Price.

  4. Type Volatility [%],

  5. Type Interest Rate [%].

  6. Type Dividend Yield.

  7. Type Days Until Expiration.

  8. Select the required calculation method.

  9. Click Calculate. The output values are displayed in the window.

    Calculate Implied Volatility using Options Calculator

    1. Click Tools > Calculators > Options Calculator. Alternatively, press CTRL + PAGE UP. The FT Options Calculator window is displayed.

    2. Type Spot Price.

    3. Type Strike Price.

    4. Type Volatility [%].

    5. Type Interest Rate [%].

    6. Type Dividend Yield.

    7. Type Days Until Expiration.

    8. Select Calculate Implied Volatility.

    9. Select Option Type: Call Put. By default, Call option type is selected.

    10. Type/modify the actual market value if required.

    11. Click Implied Vol. The output values are calculated and displayed in the window.


     Note : Order Time and Order Entry time feature is active, when Trades Online Backup is selected.

    Calculate Fair Value

    1. Click Tools > Calculators > Fair Value Calculator. The Fair Value Calculator window is displayed.


    2. Type Index Price, Interest Rate, Dividend, Contract Days values.

    3. Click Calculate. The Fair value is displayed in the window.

      Note : By default, the Interest Rate that is set in the Derivatives tab page of the Preferences window is displayed.



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