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# st: Combing Variables

 From Ferdinand Siagian <[email protected]> To [email protected] Subject st: Combing Variables Date Wed, 27 Apr 2011 15:24:54 -0400

```Hi,

```
I would like to create a program to calculate Black-Scholes Stock Option Value model. The value depends on several variables; stock price, exercise price, standard deviation, time to maturity, and risk-free rate. I can develop the formula to calculate the value of call option using Stata but only for 1 amount for each input variable.
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My question is, how to program Stata if I want to calculate call option values using different amount of those input variables simultaneously? The combinations can be too many to calculate the values one by one. Is it possible?
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For example (I simplify by including only 2 amounts for each input variables),
```Stock price is either \$50 or \$55.
Exercise price is either \$65 or \$70.
Standard deviation is either 0.25 or 0.30.
Time to maturity is 6 months or 12 months.
Risk-free rate is 0.5% or 0.75%.

What command should I use? Thank you very much for the help.

Ferdi
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