The Financial Toolbox comes with most common financial derivatives formulas ready for use. It also provides dozens of complex derivatives formulas and an insertion tool that facilitates the usage of the toolbox. The list of functions to deal with financial derivatives can be seen below:
#  Function Name  Function Description 

1 
sOptions_BlackScholes 
Returns the European option price using the standard Black and Scholes formula. 
2 
sOptions_Merton73 
Returns the European option on stock indices price using the Merton (1973) formula. 
3 
sOptions_Black76 
Returns the European option on futures/forwards using the Black (1977) formula. 
4 
sOptions_GarmanKolhagen 
Returns the European option on currency using the Garman and Kohlhagen (1983) formula. 
5 
sOptions_GeneralizedBlackScholes 
Returns the European option price using the Generalized Black and Scholes formula. 
6 
sOptions_GeneralizedBlackScholesDelta 
Returns the delta of a European option calculated with the Generalized Black and Scholes formula. 
7 
sOptions_GeneralizedBlackScholesGamma 
Returns the gamma of a European option calculated with the Generalized Black and Scholes formula. 
8 
sOptions_GeneralizedBlackScholesTheta 
Returns the theta of a European option calculated with the Generalized Black and Scholes formula. 
9 
sOptions_GeneralizedBlackScholesVega 
Returns the vega of a European option calculated with the Generalized Black and Scholes formula. 
10 
sOptions_GeneralizedBlackScholesRho 
Returns the rho of a European option calculated with the Generalized Black and Scholes formula. 
11 
sOptions_GeneralizedBlackScholesCarry 
Returns the carry sensitivity of a European option calculated with the Generalized Black and Scholes formula. 
12 
sOptions_French 
Returns the French (1984) adjusted Black and Scholes model for trading day volatility. 
13 
sOptions_JumpDiffusion 
Returns the European option price using the Merton (1976) jump diffusion model. 
14 
sOptions_MiltersenSchwartz 
Returns the European option price using the Miltersen Schwartz (1997) commodity option model. 
15 
sOptions_RollGeskeWhaley 
Returns the price of an American call on stock with known dividends using the RollGeskeWhaley formula. 
16 
sOptions_BAWAmericanApprox 
Returns the approximate price of an American option on stock using the BaroneAdesi and Whaley (1987) formula. 
17 
sOptions_BSAmericanApprox 
Returns the approximate price of an American option on stock using the Bjerksund and Stensland (1993) formula. 
18 
sOptions_Executive 
Returns the price of an executive stock option. 
19 
sOptions_ForwardStartOption 
Returns the price of a forward start option. 
20 
sOptions_TimeSwitchOption 
Returns the price of a time switch option (discrete). 
21 
sOptions_SimpleChooser 
Returns the price of a simple chooser option. 
22 
sOptions_ComplexChooser 
Returns the price of a complex chooser option. 
23 
sOptions_OptionsOnOptions 
Returns the price of an option on option. 
24 
sOptions_ExtendibleWriter 
Returns the price of a writer extendible option. 
25 
sOptions_TwoAssetCorrelation 
Returns the price of an option on two correlated assets. 
26 
sOptions_EuropeanExchangeOption 
Returns the price of a European option to exchange one asset for another. 
27 
sOptions_AmericanExchangeOption 
Returns the price of an American option to exchange one asset for another. 
28 
sOptions_ExchangeExchangeOption 
Returns the price of an exchange option on exchange option. 
29 
sOptions_OptionsOnTheMaxMin 
Returns the price of an option on the maximum or minimum of two risky assets. 
30 
sOptions_SpreadApproximation 
Returns the approximate price of a spread option. 
31 
sOptions_FloatingStrikeLookback 
Returns the price of a lookback option with a floating strike. 
32 
sOptions_FixedStrikeLookback 
Returns the price of a lookback option with a fixed strike. 
33 
sOptions_PartialFloatLB 
Returns the price of lookback option with a partialtime floating strike. 
34 
sOptions_PartialFixedLB 
Returns the price of lookback option with a partialtime fixed strike. 
35 
sOptions_ExtremeSpreadOption 
Returns the price of an extreme spread option. 
36 
sOptions_StandardBarrier 
Returns the price of a standard barrier option. 
37 
sOptions_DoubleBarrier 
Returns the price of a double barrier option. 
38 
sOptions_PartialTimeBarrier 
Returns the price of a partialtime single asset barrier option. 
39 
sOptions_TwoAssetBarrier 
Returns the price of a barrier option on two assets. 
40 
sOptions_PartialTimeTwoAssetBarrier 
Returns the price of a partialtime barrier option on two assets. 
41 
sOptions_LookBarrier 
Returns the price of a lookbarrier option. 
42 
sOptions_DiscreteAdjustedBarrier 
Returns the price of a discrete barrier option with monitoring adjustment. 
43 
sOptions_SoftBarrier 
Returns the price of a soft barrier option. 
44 
sOptions_GapOption 
Returns the price of a gap option. 
45 
sOptions_CashOrNothing 
Returns the price of a cashornothing option. 
46 
sOptions_TwoAssetCashOrNothing 
Returns the price of a cashornothing option on two assets. 
47 
sOptions_AssetOrNothing 
Returns the price of an assetornothing option. 
48 
sOptions_SuperShare 
Returns the price of a supershare option. 
49 
sOptions_BinaryBarrier 
Returns the price of a binary barrier option. 
50 
sOptions_GeometricAverageRateOption 
Returns the price of a geometric average rate option. 
51 
sOptions_TurnbullWakemanAsian 
Returns the price of an arithmetic average rate option using the TurnbullWakeman formula. 
52 
sOptions_LevyAsian 
Returns the price of an arithmetic average rate option. 
53 
sOptions_ForeignEquityOptionInDomesticCurrency 
Returns the price of a foreign equity option struck in domestic currency. 
54 
sOptions_Quanto 
Returns the price of a fixed exchange rate foreign equity option. 
55 
sOptions_EquityLinkedFXO 
Returns the price of an equitylinked foreign exchange option. 
56 
sOptions_TakeoverFXoption 
Returns the price of a takeover foreign exchange option. 
57 
sOptions_Swaption 
Returns the price of a European swaption using Black (1976) formula. 
58 
sOptions_VasicekBondOption 
Returns the price of an option on a zero coupon bond. 
59 
sFutures_ForwardPrice 
Returns the price of a forward contract with no income on the asset. 
60 
sFutures_CurrencyForwardPrice 
Returns the price of a currency forward contract using discrete interest rates. 
61 
sFutures_ForwardPriceIncomePresentValue 
Returns the price of a forward contract with a known asset income. 
62 
sFutures_ForwardPriceIncomeYield 
Returns the price of a forward contract with a known asset yield. 
63 
sFutures_ForwardValuation 
Returns the valuation of an outstanding forward contract with no income on the asset. 
64 
sFutures_ForwardValuationIncomeYield 
Returns the valuation of an outstanding forward contract with known yield. 
65 
sFutures_ForwardValuationAgreedVsCurrent 
Returns the valuation of an outstanding forward contract comparing the agreed price and the current price. 
66 
sFutures_ForwardValuationIncomePresentValue 
Returns the valuation of an outstanding forward contract with known income. 
67 
sFutures_ForwardRateAgreementValuation 
Returns the price of a forward rate agreement (FRA). 
68 
sFutures_EurodollarFutureProfit 
Returns the profit of a Eurodollar future. 
69 
sFutures_FuturesPriceTBond 
Returns the approximate price of a U.S. Treasury Bond Futures. 
70 
sFutures_FuturesValuationTBond 
Returns the approximate valuation of an outstanding U.S. Treasury Bond Futures. 
To illustrate the usage of the tool, letâ€™s calculate the price of a standard European call option. This derivative can be found in the "Financial Instruments" group located in the Financial Toolbox tab. The insertion is quite straightforward, simply select the financial instrument in the list and click on the right arrow. After choosing the destination cell  an upper left cell to receive the results  a table will be inserted in the spreadsheet that contains all necessary parameters for calculation and the price of the derivative that we were looking for.
A 
B 
C 
D 

1 
Stock options: Generalized Black and Scholes 



2 
Call or Put? 
Call 


3 
Asset price 
$ 100.00 


4 
Strike price 
$ 110.00 


5 
Time to maturity 
5.0 


6 
Riskfree rate 
5.0 % 


7 
Cost of carryng 
2.0 % 


8 
Volatility 
20.0 % 


9 
Price 
$ 15.40 
=sOptions_GeneralizedBlackScholes($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

10 
Delta 
0.51 
=sOptions_GeneralizedBlackScholesDelta($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

11 
Gamma 
0.01 
=sOptions_GeneralizedBlackScholesGamma($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

12 
Theta 
1.74 
=sOptions_GeneralizedBlackScholesTheta($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

13 
Vega 
74.71 
=sOptions_GeneralizedBlackScholesVega($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

14 
Rho 
178.03 
=sOptions_GeneralizedBlackScholesRho($B$2,$B$3,$B$4,$B$5,$B$6,$B$7,$B$8) 

15 




Of course, other SAFE TOOLBOXES^{®} tools would be of great value for pricing and managing financial derivatives. For instance, you can use the Simulation Toolbox for pricing derivatives by Monte Carlo simulation, or you can use the sensitivity analysis to find the impact on price caused by changes in derivative parameters.