If you need target price of the call option, total call cost (premium) and total put cost (premium) and you already have number of option contracts, price of the call option, price of the put option, strike price and current asset price or target price, this calculator does the substitution for you. It suits a quick check, a homework answer you want to confirm, or any figure you need to sanity test.
What Is the Call Put Option Calculator?
The call put option calculator takes number of option contracts, price of the call option, price of the put option, strike price and current asset price or target price and turns them into target price of the call option, total call cost (premium) and total put cost (premium).
It is the kind of calculation you would otherwise do on the back of an envelope: mechanical, repeatable and easy to get subtly wrong without noticing.
How the Call Put Option Figure Is Built
Each result is calculated from the ones before it, so the working is fully visible. That matters when the answer is going to be quoted to somebody else and you need to be able to explain where it came from.
The figures are exactly as good as the assumptions underneath them. Check the rates, the periods and the tax treatment before you rely on the result.
Reading the Result Sensibly
A small change in an input can move the result by much more than you would expect, particularly where the calculation divides by one of the figures you supplied. That is worth understanding before you rely on a figure.
For anything that will be committed to, write the inputs down beside the result. A number you can reproduce is worth far more than one you cannot explain.
A Worked Example
Working through an example, with number of option contracts set to 10, price of the call option set to 5, price of the put option set to 2, the calculator returns target price of the call option of -90, and call potential profit of -95,000, and call potential return of -19. Substitute your own figures and the same steps produce the same kind of answer.
Frequently Asked Questions
What do I need to work out target price of the call option?
Enter number of option contracts, price of the call option, price of the put option, strike price and current asset price or target price. The calculator then works through the relationship and reports target price of the call option, total call cost (premium) and total put cost (premium).
What does the call put option actually calculate?
It takes number of option contracts, price of the call option, price of the put option, strike price and current asset price or target price and converts them into target price of the call option, total call cost (premium) and total put cost (premium) using the standard relationship for this problem. Each step is applied in turn, so every output is traceable back to the numbers you typed in.
How should I enter number of option contracts?
Use the value you actually have, in the unit shown next to the field. Enter every value in the same unit system. The calculator assumes the figures you supply are consistent, so it cannot correct a mistake that happens before the calculation starts.
Does anything you type get stored?
No. The whole calculation runs inside your browser, and nothing you enter is uploaded, logged or sent anywhere.
Can I use this for a quick estimate as well as a precise answer?
Yes. The calculator is built for quick checks, so round your inputs to a sensible number of significant figures and the result will be just as useful. If you need more precision, keep the same method and add digits to the inputs rather than adjusting the method itself.