Abstract
Demonstrating the complete Black-Scholes option pricing formula in a traditional classroom setting presents several challenges due to its complex nature. Therefore, there are several educational benefits to requiring an interactive Excel assignment that engages students in formula programming to observe instantaneous price changes in calls and puts. Students gain job-transferable Excel skills and learn how the major components of the option pricing formula affect the resulting option price. Additionally, the educator benefits from the introduction of a simple macro function that expedites grading complex formulas.
Recommended Citation
(2026)
"Black-Scholes Option Pricing: Implementing a Hands-On Assignment Using Excel,"
Journal of Economics and Finance Education: Vol. 14:
Iss.
1, Article 3.
Available at:
https://scholarship.rollins.edu/jefe/vol14/iss1/3
