You can watch the tutorial video, read the step by step text tutorial or go through the step by step screenshots tutorial:

To follow along, you can download the Excel file used in this tutorial

##### Step by Step Text Tutorial:

1. Click on the B&S Calc icon in the ADD-INS toolbar. The Black and Scholes Option Value Calculator window will open.

2. Input the main parameters:

**Market Price**: current market price of the underlying security.**Exercise Price**: the exercise price of the option.**Time to Maturity**: the time to maturity of the option. May be expressed in years or as exercise date (in this case, B&S Calculator will calculate years to maturity between current date and exercise date).**Risk Free Rate**: the risk free rate with the same maturity as the option.**Annualized Volatility**: the annualized volatility of the returns of the underlying security.

If you know the annualized volatility, skip action items 3 to 5 and continue from action item 6.

If you want to calculate the annualized volatility using data of the prices or returns of the underlying security, continue to action item 3:

3. You can use historical data of prices or returns of the underlying security to calculate the annualized volatility. Select the data range by clicking on the “**Returns Range**” field, selecting the range in the spreadsheet and returning to the Black and Scholes Option Value Calculator window. Note that you can select prices data or returns data from a single row or column.

Note: If the range input field is not empty, you need to delete existing text before selecting a new range in the spreadsheet.

4. Select the frequency of the selected data in the **Data Frequency** section: Daily, Weekly or Monthly.

5. Click on the “**Calculate**” button in the **Volatility Calculator** section and the volatility, annualized volatility and input type will appear in the appropriate fields. Make sure that Black and Scholes Option Value Calculator correctly identified input type (prices/returns). You can click on the “**Export**” button to export the annualized volatility to the **Option Value Calculator** section.

6. Click on the “**Calculate**” button in the **Option Value Calculator** section and the Call and Put values of the option will appear in the appropriate fields.

7. Select the first output cell by clicking on the “**Output Cell**” field, clicking on the cell in the spreadsheet and returning to the Black and Scholes Option Value Calculator window.

Note: If the range input field is not empty, you need to delete existing text before selecting a new range in the spreadsheet.

8. Click on the “**Export Option Values**” button to export only the values of the option, or on the “**Export All Data**” button to export the values and the data used as input in the calculation.

##### Step by Step Screenshots Tutorial:

1. Click on the B&S Calc icon in the ADD-INS toolbar. The Black and Scholes Option Value Calculator window will open:

2. Input the main parameters:

**Market Price**: current market price of the underlying security.**Exercise Price**: the exercise price of the option.**Time to Maturity**: the time to maturity of the option. May be expressed in years or as exercise date (in this case, B&S Calculator will calculate years to maturity between current date and exercise date).**Risk Free Rate**: the risk free rate with the same maturity as the option.**Annualized Volatility**: the annualized volatility of the returns of the underlying security.

If you know the annualized volatility, skip action items 3 to 5 and continue from action item 6.

If you want to calculate the annualized volatility using data of the prices or returns of the underlying security, continue to action item 3:

3. You can use historical data of prices or returns of the underlying security to calculate the annualized volatility. Select the data range by clicking on the “**Returns Range**” field, selecting the range in the spreadsheet and returning to the Black and Scholes Option Value Calculator window. Note that you can select prices data or returns data from a single row or column.

Note: If the range input field is not empty, you need to delete existing text before selecting a new range in the spreadsheet.

4. Select the frequency of the selected data in the **Data Frequency** section: Daily, Weekly or Monthly.

5. Click on the “**Calculate**” button in the **Volatility Calculator** section and the volatility, annualized volatility and input type will appear in the appropriate fields. Make sure that Black and Scholes Option Value Calculator correctly identified input type (prices/returns). You can click on the “**Export**” button to export the annualized volatility to the **Option Value Calculator** section.

6. Click on the “**Calculate**” button in the **Option Value Calculator** section and the Call and Put values of the option will appear in the appropriate fields.

7. Select the first output cell by clicking on the “**Output Cell**” field, clicking on the cell in the spreadsheet and returning to the Black and Scholes Option Value Calculator window.

**Export Option Values**” button to export only the values of the option, or on the “

**Export All Data**” button to export the values and the data used as input in the calculation.