Fair Value Formula

[bucket183]

Does anyone know how the fair value of options is calculated?

 

[mazzatelli]

Popular models for TheoVal are BSM and Binomial steps. Are you interested in theory, or are you actually after a calculator?

 

[bucket183]

I guess I am after something that I can put into excel to estimate what a the call will be worth in future (short term).

 

[wayneL]

It would entail inputting the correct future realized volatility into whatever model you're using.

Got a crystal ball?

Fair value is subjective.