Foreign Exchange Option Calculator App
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OptionFX is designed to value foreign exchange options (FX options) based on the Nobel prize winning 'Black Scholes Option Pricing Model'. It calculates the domestic currency value of a call/put option into the foreign currency. The values are calculated as your finger moves either by typing new inputs, moving the slider (for volatility only), or touching the green bar (for strike price only). A graphic simulation is created to show the impact on FX option values when volatility changes while all others remain unchanged, The simulation is also animated when you tap the clock button at the bottom(tap the clock again to stop the animation).
Historical volatility for major foreign exchange rates from one week to a 5 year period are presented on the browser at the bottom half of the screen. It will be updated on a weekly basis. We also post a link to wsj.com so you may see the New York Closing Snapshot of Exchange Rates without leaving the App.
Please visit www.option123.com/iPhone
What's New in Version 2.11
Historical volatility calculator is added.
Calculate historical volatilities automatically for any pair of currencies which rates against U.S. dollar are published by the United States Federal Reserve System over any periods at any date (measurement date) available on its web-site. OptionFX uses such rates to calculate the cross rates for a pair of currencies that does not include the U.S. dollar. A Volatility Summary Report is generated for each calculation and can be emailed to your designated email address.
Volatility is the standard deviation of the continuously compounded rates of exchange rates over the measurement term. There are 5 inputs to be specified:
1. (Per one unit of ) Fixed Currency;
2. Variable Currency;
3. 'Time to Maturity (in years)';
4. Measurement date, normally a business day when foreign exchange market in New York is open;
5. 'Time Interval': daily, monthly or annually.
Do not trade solely based on volatility calculated by OptionFX. No warranty whatsoever is provided by OptionFX or Option123 which in no event shall be liable for any losses/damages that may be resulted from using OptionFX either directly or indirectly.