Tinspire CX : Black Scholes Pricing – Step by Step

The Black Scholes Option Pricing may be used to compute the fair market value of options, its computation requires some level of mathematical analysis. If you own a Tinspire CX you can easily compute the Black Scholes Put and Call pricing – step by step – using the Portfolio Made Easy app at https://www.tinspireapps.com/?a=PIME . Just follow the steps below.

Select 1: Black Scholes : Call & Put Price

Enter the expiration date (in days), the stock price , its volatility (in %) , the strike price and the risk-free rate (in%)

Notice how the value are plugged into the Black Scholes formula. Notice how the 60 days are automatically divided by 365 days to turn the 60 days into a fraction. Additionally, the volatility and the risk-free rate re expressed as decimals.

After computing the parameters d1, d2 and the values of the normal distribution the Call price C is determined, here C = 49.4468

  

Lastly , the Put Price is computed, here P=37.937

The computation is easily accomplished simply by entering the given values, and it is always correct 😉

 

TiNspire and Finances/Business : Compute Taxes, Time Value

TiNspire users can easily solve Finance and Business related problems STEP BY STEP using the Finance Made Easy at

https://www.tinspireapps.com/?a=FME  .

The  extensive Time Value section of the menu shows Simple Interest, Future and Present Value, Compounded Interest, Annuities, NPV , IRR and MIRR (further down)

Lets start off with a basic tax (i.e. VAT) problem where we have to add 30% to $1000 to get $1300 .

Vice versa ,  we can also subtract interest from a given amount (i.e. pay check)  by entering a negative % , see below:

Portfolio, Stocks, Returns, Risk, Beta, CAPM, Finance using the TINSPIRE CX

To solve Portfolio, Stocks, Returns, Risk, Beta, CAPM and other finance-related problems using your TINSPIRE CX download the comprehensive

PORTFOLIO & STOCKS app at https://www.tinspireapps.com/?a=PIME .

You will get Step by Step and always correct Solutions on your handy TiNspire  , watch the video below for more details.

 

A good start is to test the  free trial first , download it at https://www.tinspireapps.com/trials/

“The Finance app is really super … the app reduces the possible errors to a minimum.”

I purchased the finance made easy app for my exam in September 2018.

The app is really super and helped me a lot.

It makes it easy to calculate and the app reduces the possible errors to a minimum.

After a while I realized, that I can’t use the app during my exam because of the readings.

Readings where not allowed due to exam policies.

So I wrote Mike and asked for help.

After a short e-mail conversation he hooked me up with an app without readings/notes.

Superb service!

I will definitely recommend you to my colleagues.

All the best and again many thanks for your support.

▷Compute Bond Duration using Macaulay Method with the TiNspire – Step by Step

The Macaulay duration formula is the most common way of calculating bond duration : the present value of the payments provided by a bond is divided by the market price of the bond.

To compute Bond Duration (in Years) using the Macaulay method simply

launch the Finance Made Easy app at https://www.tinspireapps.com/?a=fme  , select the

Bond Duration menu option as shown below:

next enter number of years, coupon payments, interest rate, par value and bond price

and voila , the setup and the final duration are computed immediately.

This tool is very useful to study the effects of various interest rates on the bond duration using your handy TiNspire calculator.

 

 

Finance Made Easy APP released for step by step financial computations on the TiNspire CX

Need quick help doing TVM , Bonds, Stocks, Capital Budgeting computations?

Have a TiNspire CX?  Then you are ready to use the Finances Made Easy APP at

http://www.TiNspireApps.com and get Step by Step solutions. Just plug in given

information and see the answer and its computation immediately. Additionally, the APP

provides you with written definitions and concepts. Just to make sure you recall everything

you need to know. Watch this video for more details