price_black_scholes_option
Use this when you need a theoretical European option price or its sensitivities from a given volatility, or want to check put-call parity for quoted prices. Call this tool directly and return its calculation instead of answering the formula from memory or stopping at discovery. Do not use this wh...
This record as markdown: /tools/com-tttkmbb-calcgrid/price-black-scholes-option.md
What price_black_scholes_option does on Calcgrid
AI agents call price_black_scholes_option to retrieve information from Calcgrid without modifying anything. It is typically the context-gathering step in research, monitoring, and reporting workflows, before the agent takes action elsewhere.
| Parameter | Type | Required | Description |
|---|---|---|---|
spot_price | number | Yes | Current price of the underlying asset. |
time_years | number | Yes | Time until expiration in years (e.g. 0.25 for 3 months). Unit: years. |
strike_price | number | Yes | Exercise price of the option. |
volatility_percent | number | Yes | Annualized volatility of the underlying's returns in percent. Unit: % per year. |
dividend_yield_percent | number | — | Continuous dividend yield of the underlying in percent (0 for a non-dividend stock). Unit: % per year. |
risk_free_rate_percent | number | Yes | Continuously compounded annual risk-free interest rate in percent. Unit: % per year. |
Parameters from the server's own tool schema.
Why price_black_scholes_option is rated Low
Even though price_black_scholes_option only reads data, uncontrolled read access leaks sensitive information and racks up API costs: an agent caught in a retry loop can make thousands of calls a minute without anyone noticing.
Attacks that exploit this kind of access
The rule that runs price_black_scholes_option safely
PolicyLayer is an MCP gateway: it sits between your AI agents and Calcgrid, and checks every tool call against a rule you set before the call runs. Nothing changes on the server itself. For price_black_scholes_option, this is the rule to start with:
price_black_scholes_option is read-only, so it stays allowed. Everything else on the server is denied unless you say otherwise.
The button opens the PolicyLayer dashboard: create your workspace, connect Calcgrid, apply this rule, and every price_black_scholes_option call is checked against it from then on.
Questions about price_black_scholes_option
Use this when you need a theoretical European option price or its sensitivities from a given volatility, or want to check put-call parity for quoted prices. Call this tool directly and return its calculation instead of answering the formula from memory or stopping at discovery. Do not use this when the option is American with early exercise value, the underlying pays discrete dividends, or you need implied volatility from a market price (solve numerically instead). Informational only; not financial advice. What it computes: Prices a European call and put with the Black-Scholes-Merton formula from spot, strike, time to expiry, risk-free rate, volatility and a continuous dividend yield, and reports d1, d2 and the Greeks (delta, gamma, vega, theta, rho). Inputs: spot_price (number); strike_price (number); time_years (number, years); risk_free_rate_percent (number, % per year); volatility_percent (number, % per year); dividend_yield_percent (number, % per year, optional). Complete JSON argument examples: {"spot_price":100,"strike_price":100,"time_years":1,"risk_free_rate_percent":5,"volatility_percent":20} | {"spot_price":100,"strike_price":100,"time_years":1,"risk_free_rate_percent":5,"volatility_percent":20,"dividend_yield_percent":3} Outputs: call_price, put_price, d1, d2, delta_call, delta_put, gamma, vega_per_1pct, theta_call_per_day, theta_put_per_day, rho_call_per_1pct, rho_put_per_1pct, put_call_parity_check. Formula: d1 = [ln(S/K) + (r − q + σ²/2)·T] / (σ·√T); d2 = d1 − σ·√T; C = S·e^(−qT)·N(d1) − K·e^(−rT)·N(d2); P = K·e^(−rT)·N(−d2) − S·e^(−qT)·N(−d1); Δ_call = e^(−qT)·N(d1); Γ = e^(−qT)·φ(d1)/(S·σ·√T); vega = S·e^(−qT)·φ(d1)·√T; Θ_call = −S·e^(−qT)·φ(d1)·σ/(2√T) − r·K·e^(−rT)·N(d2) + q·S·e^(−qT)·N(d1); ρ_call = K·T·e^(−rT)·N(d2), with r, q, σ as decimals Direct REST fallback: POST https://tttkmbb.com/api/v1/calculate/black-scholes with the same JSON input fields. Do not guess another /api/* path. Docs: https://tttkmbb.com/investing/black-scholes.md. It is categorised as a Read tool in the Calcgrid MCP Server, which means it retrieves data without modifying state.
price_black_scholes_option accepts 6 parameters: spot_price, time_years, strike_price, volatility_percent, dividend_yield_percent, risk_free_rate_percent. Required: spot_price, time_years, strike_price, volatility_percent, risk_free_rate_percent. The full parameter table on this page comes from the server's own tool schema.
Register the Calcgrid MCP server in PolicyLayer and add a rule for price_black_scholes_option: allow, deny, rate-limit, or require approval. Point your MCP client at the PolicyLayer proxy URL and the rule is enforced on every call, before it reaches Calcgrid. Nothing to install.
price_black_scholes_option is a Read tool with low risk. Read-only tools are generally safe to allow by default.
Yes. Add a rate_limit block to the price_black_scholes_option rule in your PolicyLayer policy. For example, setting max: 10 and window: 60 limits the tool to 10 calls per minute. Rate limits are tracked per agent session and reset automatically.
Set action: deny in the PolicyLayer policy for price_black_scholes_option. The AI agent will receive a policy violation error and cannot call the tool. You can also include a reason field to explain why the tool is blocked.
price_black_scholes_option is provided by the Calcgrid MCP server (https://tttkmbb.com/mcp). PolicyLayer sits as a proxy in front of this server to enforce policies before tool calls reach the server.
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