Has anybody used the "option calculator" of the brokerage house
Charles Schwab given under category "trade" subcategory "options" and
if so to what success or lack of success? I have tried to calculate
with it the call and put options of a stock with the symbol HOLX on
September 1, 06 using the Black & Sholes model putting in the price
42.64 of that date, the strike 40.00, expirarion Jan 2009, interest
rate 4.81, volatility 13.7 and 0 for the dividend since they pay none.
The result was 8.03 for the call and 0.88 for the put. This is in
sharp contrast with the bid and ask, 7.9-8.8, for the put. I did not
look up the bid and ask for the call since I was not interested in the
call, but 8.03 is less unreasonable than 0.88 for the put.

Does anybody know anything about the calculator and why it gave such
an unreasonable result for the put?

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Request for Question Clarification by elmarto-ga on 12 Sep 2006 06:36 PDT

Hello vaac,
Could you please provide the link to the calculator?

Regards,
elmarto

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Clarification of Question by vaac-ga on 12 Sep 2006 17:25 PDT

I did not understand what you mean by "link". To get to the schwab
calculator one needs to have an account there and to go to "trade" 
and from there to "options". In the meantime I found out that there
are several free calculators on the internet

For interested people see the following question (and answer):
http://answers.google.com/answers/threadview?id=757943

Thank you, edithcen-ga, but I do not know how to search google in
order to find question757943. Could you inform me how?

Thanks in advance.
vaak-ga