The mathematics involved in the formula is complicated and can be intimidating. Fortunately, you don't need to know or even understand the math to use Black-Scholes modeling in your own strategies. As mentioned previously, options traders have access to a variety of online options calculators, and many of today's trading platforms boast robust options analysis tools, including indicators and spreadsheets that perform the calculations and output the option pricing values. An example of an online Black-Scholes calculator is shown in Figure 5 the user inputs all five variables (strike price, stock price, time (days), volatility and risk free interest rate) and clicks "Get quote" to display results.

## Black-Scholes Formula (d1, d2, Call Price, Put Price

Note: While the original Black-Scholes model didn't consider the effects of dividends paid during the life of the option, the model is frequently adapted to account for dividends by determining the ex-dividend date value of the underlying stock.