Does anyone know any tips and tricks to get faster/more consistent with using their calculators?
I have the TI-30XS MultiView and have found the data functions extremely helpful for calculating means and variances of data tables.
The only other trick I've found so far is I use the Prepaid Forward Price version of the Black-Scholes equation almost exclusively as it saves a few keystrokes and makes me less likely to push the wrong key. Here's how:
1) Store the prepaid forward prices of the stock and strike as x & y, so
x = S(0)*exp(-delta*t) and y = K*exp(-r*T).
2) Store the denominator of the equation for d1/d2 as z, so z = sigma*sqrt(t),
3) Compute d1 and d2:
d1 = (ln(x/y) + .5z^2)/z and d2 = d1 - z
4) Compute the price of the call or put as C = x*N(d1) - y*N(d2)
and P = y*N(-d2) - x*N(-d1)
Does anyone have any other ways to save time or improve accuracy on the calculator?
I have the TI-30XS MultiView and have found the data functions extremely helpful for calculating means and variances of data tables.
The only other trick I've found so far is I use the Prepaid Forward Price version of the Black-Scholes equation almost exclusively as it saves a few keystrokes and makes me less likely to push the wrong key. Here's how:
1) Store the prepaid forward prices of the stock and strike as x & y, so
x = S(0)*exp(-delta*t) and y = K*exp(-r*T).
2) Store the denominator of the equation for d1/d2 as z, so z = sigma*sqrt(t),
3) Compute d1 and d2:
d1 = (ln(x/y) + .5z^2)/z and d2 = d1 - z
4) Compute the price of the call or put as C = x*N(d1) - y*N(d2)
and P = y*N(-d2) - x*N(-d1)
Does anyone have any other ways to save time or improve accuracy on the calculator?
Calculator Tips & Tricks