How can we find to what correspond some values in a function?

[ray444]

Hello,

Please find attached a file I found concerning the pricing of an option.
I can't find in the VBA code to what correspond the values: S, X, T, r, v, d
Where are they specified?

Thanks a lot

regards

[Bob Phillips]

It is explained on their site


In the following code

OptionType is either “C” for a call or “P” for a put
S is the stock price
X is the strike price
T is the time to expiry
r is the risk free rate
v is the volatility
d is the dividend yield

[ray444]

Hi thanks
I know I read it but how come excel detects the letters as the corresponding variables without being specified in the vba code?
regards

[Bob Phillips]

It is specified in the code, the parameters are passed in order.

[ray444]

Thanks a lot xld you mean that
dOne(S, X, T, r, v, d) corresponds in order to StockPrice;StrikePrice;TimeToExpiry;RiskFreeRate;Volatility;Dividend
But how is "C" and "P" mentionned?

Regards

[Bob Phillips]

Yes, that is what what the website that you read says. In that UDF, it does not use OptionType.