NOTICE TO USER: THIS IS A LICENSE AGREEMENT BETWEEN YOU AND DERIVATECH CORPORATION ("DTC"). IT DESCRIBES YOUR RIGHT TO USE THE OPTIONS TOOLBOX« v3.0 SOFTWARE. PLEASE READ THIS AGREEMENT CAREFULLY. IF YOU AGREE TO BE BOUND BY THE TERMS AND CONDITIONS OF THIS AGREEMENT, PLEASE CLICK THE "ACCEPT" BUTTON AT THE END OF THIS AGREEMENT. IF YOU DO NOT AGREE TO THE TERMS AND CONDITIONS OF THIS AGREEMENT, PLEASE CLICK THE "DECLINE" BUTTON AT THE END OF THIS AGREEMENT AND DO NOT USE THIS SOFTWARE AND, IF YOU HAVE PAID FOR THIS SOFTWARE, PLEASE RETURN THE SOFTWARE TO YOUR POINT OF PURCHASE FOR A FULL REFUND.
The Options Toolbox« is the property of DTC. All rights not specifically granted to you hereunder are reserved by DTC. You are hereby granted the non-exclusive right to use The Options Toolbox on one computer at a time. You shall not make any copies of The Options Toolbox, other than back-up or archival copies. You shall not modify, alter, adapt, merge, decompile, disassemble or reverse engineer the program. You may transfer The Options Toolbox to another party only if that party agrees to accept the terms of this agreement and sends written acknowledgment of such acceptance to DTC at 400 South LaSalle Street, Chicago, Illinois 60605 and you deliver to that party, or destroy, the original program, any copy thereof, and any related materials or documentation. Any transfer other than as expressly permitted herein shall be void and result in the termination of this license. This license may only be modified or amended in writing, signed by you and DTC. This license will be terminated automatically if you violate any of its terms and may otherwise be terminated by DTC for cause upon written notice to you. This license constitutes the parties' final, complete and exclusive agreement with respect to The Options Toolbox.
THE OPTIONS TOOLBOX IS PROVIDED TO YOU "AS IS" WITHOUT WARRANTY OF ANY KIND, EITHER EXPRESS OR IMPLIED, INCLUDING BUT NOT LIMITED TO ANY IMPLIED WARRANTY OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE, REGARDLESS OF WHETHER DTC KNOWS OR HAS REASON TO KNOW OF YOUR PARTICULAR NEEDS. IN ADDITION, NEITHER DTC OR ANY OTHER PERSON MAKES A WARRANTY THAT THE PROGRAM WILL RUN UNINTERRUPTED OR ERROR-FREE. YOU ARE SOLELY RESPONSIBLE FOR YOUR USE OF THE OPTIONS TOOLBOX.
IN NO EVENT WILL DTC OR ANY OTHER PERSON BE LIABLE TO YOU FOR DAMAGES INCLUDING, WITHOUT LIMITATION, ANY LOSS OF PROFITS, LOST SAVINGS, DAMAGE TO DATA OR OTHER INCIDENTAL OR CONSEQUENTIAL DAMAGES ARISING OUT OF THE USE OR PERFORMANCE OF THE OPTIONS TOOLBOX, EVEN IF DTC OR SUCH OTHER PERSON HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES, OR FOR ANY CLAIM BY ANY THIRD PARTY.
The Options Toolbox is provided with Restricted Rights. Use, reproduction or disclosure by the U.S. government is subject to the restrictions set forth in Sec. 52.227-19⌐ of FAR.
The Options Toolbox is not to be construed as an offer or the solicitation of an offer to buy or sell options or other securities, or as a recommendation of specific investments or investment strategies.
Options involve risk, and are not suitable for all investors. It is important that you read and understand the information in this section, as well as the publication Characteristics and Risks of Standardized Options which every investor must receive from his/her brokerage firm prior to the initial purchase or sale of an option.
Alternatively, a copy of this publication may be obtained from the Chicago Board Options Exchange (CBOE), 400 South LaSalle Street, Chicago, IL 60605, or by calling the CBOE at 1-800-OPTIONS.
The Options Toolbox is FOR EDUCATIONAL PURPOSES ONLY. In some of its theoretical calculations, The Options Toolbox uses the Cox-Ross-Rubinstein binomial approximation to the Black-Scholes option pricing model. While this and other approximations of the Black-Scholesmodel are the most popular models used for option pricing, other models exist that consider different factors. No model can be entirely accurate. In addition, a number of simplifications have been made to the model - for instance with regard to dividend assumptions - and the results under various circumstances suggested by this calculator are likely to be different from the results suggested by other calculators. More importantly, The Options Toolbox is aneducational tool intended to assist individuals in learning how options work. It is not intended to provide investment advice, and users of the calculator should not make investment decisions based upon values generated by the calculator.
INDEX OPTIONS - STYLE: The Options Toolbox uses a mathematical formula to calculate "theoretical values" of call and put options given six inputs supplied by the user. The formula differs depending on whether the option being valued is an American-style (exercisable on any day prior to expiration) or a European-style (exercisable only on the last day prior to expiration) contract. Therefore, it is important to know which kind of option contract you are pricing. To obtain this information, check with the exchange on which the option is traded.
DIVIDEND FLOW: This program assumes that the dividend flow is continuous and even throughout an equity index option's life. Actual stocks pay dividends at discrete intervals. The difference between using actual ex-dividend dates and the assumption of even, continuous dividends made by this program can also lead to discrepancies between theoretical values and those observed in the marketplace.
VOLATILITY: Volatility has a significant influence on the price of an option contract. Small variations in these estimates can result in significantly different prices. It is important to understand that during any trading day the consensus among traders and investors on an estimate of future market volatility is dynamic, and can change frequently and abruptly. Therefore, do not expect prices you generate with The Options Toolbox to resemble prices found in the marketplace.
TAX CONSIDERATIONS, TRANSACTION COSTS and MARGIN REQUIREMENTS: Options involve tax considerations and transaction costs that can significantly affect the profit or lossresults of buying and writing options. Certain options transactions also involve margin requirements which can significantly affect the economics of the transaction.None of these factors are taken into account in this program. For tax considerations,you should seek the advice of a tax professional. For transaction costs and margin requirements, consult your broker.
Standard & Poor's«, S&P«, S&P100« and S&P500« are registered trademarks of The McGraw-Hill Companies and are licensed for use by the Chicago Board Options Exchange, Inc. Options based on the S&P 100 and S&P 500 are not sponsored, endorsed, sold or promoted by The McGraw-Hill Companies and The McGraw-Hill Companies makes no representation regarding the advisability of investing in such products.
LEAPS« and OEX« are registered trademarks and SPX TM is a trademark of the Chicago Board Options Exchange.
"Dow Jones SM" and "Dow Jones Industrial Average SM", "Dow Jones Transportation Average SM", "Dow Jones Utility Average SM", "Options on The Dow SM" and "The Dow SM" are service marks and "Dow Jones Averages«", is a registered mark of Dow Jones & Company, Inc. and these havebeen licensed for certain purposes by The Chicago Board Options Exchange,Inc. (CBOE). CBOE's options based on the Dow Jones Averages are not sponsored, endorsed, sold or promoted by Dow Jones, and Dow Jones makes no representation regarding the advisability of investing in such products.
Nikkei 300« is a registered trademark of Nihon Keizai Shimbun Inc., and is licensed for use by the Chicago Board Options Exchange, Inc.
The Nasdaq-100 Index«, Nasdaq National Market«, and Nasdaq« are registered marks and The Nasdaq Stock MarketSM, NDXSM and NDSSM are service marks of The Nasdaq Stock Market, Inc. These marks are licensed for use by the Chicago Board Options Exchange, Inc. in connection with the trading of options based on the Nasdaq-100 Index. Such options have not been passed on by The Nasdaq Stock Market, Inc. or its affiliates as to their legality or suitability, and such options are not issued, endorsed, sold or promoted by The Nasdaq Stock Market, Inc. or its affiliates.
THE NASDAQ STOCK MARKET, INC. OR ITS AFFILIATES MAKES NO WARRANTIES AND BEARS NO LIABILITY WITH RESPECT TO SUCH OPTIONS.
The Russell 2000« Index is a registered trademark of Frank Russell Company.
The Goldman Sachs Technology Indexes are the property of Goldman, Sachs & Co. (Goldman Sachs) and have been licensed to the Chicago Board Options Exchange in connection with the trading of options based upon the indexes. Goldman Sachs assumes no liability in connection with the trading of any contract based upon any of the indexes. GSTI is a trademark of Goldman, Sachs & Co.
The Options Toolbox IS DESIGNED TO BE USED IN CONJUNCTION WITH TEXTS AND OTHER EDUCATIONAL MATERIALS.
The Options Toolbox ⌐ 1995-1999 DerivaTech Corporation.
