OpPrice v1.2


Introduction
===========

        OpPrice is an option valuation program for the Newton MessagePad.
OpPrice is powerful, yet easy to use. Just enter the five variables that
determine an option's theoretical value (price, strike price, volatility,
time remaining, and short term interest rate) and tap the "Calc" button. The
option's values (price, delta, gamma, vega and theta) will be displayed for
calls (and puts in the registered version).


Installation
===========

        OpPrice installs like most other Newton packages.

        1. Make sure that the cable from the Mac/PC is connected properly to
           the Newton.

        2. Start a Newton package installer on the Mac/PC (such as the Newton
           Connection Kit).

        3. Select "Install package" (or equivalent) from the menu bar and
           choose OPPRICE.PKG.

        4. On the Newton, tap "Connection" in Extras then the appropriate
           type of connection (such as Macintosh serial).

        5. OpPrice should install automatically in a few seconds.


File list
========

         This is a complete file list.

        1. OpPrice.pkg - the main program in Newton package format.

        2. ReadMe.txt - this file.

        3. Catalog.txt - a catalog of other B.P.S., Inc.'s products.

        4. OrderForm.txt - the form for registering OpPrice.


Using OpPrice
=============

        OpPrice is a very easy program to use. Enter the five required
variables that determine an option's theoretical value. The input boxes allow
for hand writing recognition or keyboard entry. Price, volatility, and time
may be changed on the fly with up and down arrows. To calculate the option's
theoretical value, tap the "Calc" button. The option's call price (callp),
delta (calld), gamma (callg), vega (callv) and theta (callt) will be
displayed. (Put values can only be displayed on the registered version.)
        To change a price by one tick, press either the up or down arrow
next to "Price". To change the volatility by a tenth of a percent, press
either the up or down arrow next to "Volatility". To change the time
remaining by one day, press either the up or down arrow next to "Time".
        To setup the parameters for a specific contract, tap the "Info"
button. A price can be shown as a "Decimal" or a "Fraction". With a
"Fraction" price, the number after the decimal point is the number of ticks.
For example, Treasury Bonds are traded in 1/32nds. If the "Underlying ticks"
is 32 and the numbers are displayed in fractions, then 95 5/32 will be shown
as 95.05. A contract may also be a "Future" (for options on futures contracts),
a "Stock" (for options on stocks), or a "Currency" (for options on FOREX).
Both the "Underlying ticks" and the "Option ticks" may be specified. The
"Invert" option is only for Eurodollar and Treasury Bill options.
        Many different option contacts may be stored in OpPrice v1.2. To
create another option contract, tap the action button and choose "Duplicate".
A new option contact, exactly like the current one will be created. The new
option contract may then be modified as needed. Tap the overview button for a
list of contracts. Tap on a contract to display it.
        Spreads are a new feature in OpPrice v1.2. Simple bull/bear spreads,
straddles, and strangles may now be calculated. To calculate a spread, change
the type in the top right corner to the desired spread type (Option, Spread,
Straddle, or Strangle). If using a spread that requires two different
strikes, set the price to display both strikes separated by a slash (94/96).


Examples
========

        Treasury Bond: Fraction, Future, 32, 64
        Eurodollar: Decimal, Future, 100, 100, Invert
        S&P: Decimal, Future, 20, 20
        Crude Oil: Decimal, Future, 100, 100
        Gold: Decimal, Future, 10, 10
        Soybeans: Decimal, Future, 4, 8
        Live Cattle: Decimal, Future, 40, 40
        Cotton: Decimal, Future, 100, 100
        IBM: Decimal, Stock, 8, 16
        Deutsche Mark (FOREX): Decimal, Currency, 100, 100


Bibliography
============

        The following is a list of excellent books and articles about option
pricing and/or trading.

Barone-Adesi, Giovanni and Whaley, Robert E.
"Efficient Analytic Approximation of American Option Values."
The Journal of Finance, 47 (June 1987), 301-320.

Black, Fischer and Scholes, Myron.
"The Pricing of Options and Corporate Liabilities."
Journal of Political Economics, 81 (May-June 1973), 637-659.

Bookstaber, Richard M.
Option Pricing & Investment Strategies
Chicago: Probus Publishing Co. 1987

Cox, John C. and Rubinstein, Mark.
Options Markets
Englewood Cliffs, NJ: Prentice-Hall, Inc. 1985

McMillan, Lawrence G.
Options as a Strategic Investment
New York: New York Institute of Finance. 1986

Natenberg, Sheldon.
Option Volatility & Pricing: Advanced Trading Strategies and Techniques
Chicago: Probus Publishing Co. 1994

Tompkins, Robert G.
Options Analysis
Chicago: Probus Publishing Co. 1994


Registration
============

        OpPrice is a shareware program that has a 30 day evaluation period
after which a payment of $22 is required. As shareware, OpPrice was
distributed freely in order to allow people to "test drive" it. The try-
before-you-buy concept allows users to find out which programs are useful
before purchasing them. If a shareware program is useful or entertaining,
please support it through registration. The registration fee for OpPrice is
only $22 and entitles you to the newest registered version of the program, a
printed manual, a Newton book manual, customer support (through the mail or
on Compuserve, AOL, or the Internet), and information (and discounts) on
other offerings from Burnham Park Software, Inc. To register, send your name,
address, and a check or money order to:

        Burnham Park Software, Inc.
        P.O. Box #814
        Chicago, IL 60690-0814

        Phone: (312) 922-6313
        BBS: (312) 922-2839
        Compuserve: 71532,3271
        AOL: Burnsoft
        Internet: burnsoft@aol.com
				WWW: http://execpc.com/~burnsoft


Disclaimer
==========

        OpPrice is supplied as is. The author disclaims all warranties,
expressed or implied, including, without limitation, the warranties of
merchantability and of fitness for any purpose. The author assumes no
liability for damages, direct or consequential, which may result from the use
of OpPrice.


ASP Ombusman statement
======================

        Burnham Park Software, Inc. is a member of the Association of
Shareware Professionals (ASP). ASP wants to make sure that the shareware
principle works for you. If you are unable to resolve a shareware-related
problem with an ASP member by contacting the member directly, ASP may be able
to help. The ASP Ombudsman can help you resolve a dispute or problem with an
ASP member, but does not provide technical support for members' products.
Please write to the ASP Ombudsman at 545 Grover Road, Muskegon, MI 49442-9427
USA, FAX 616-788-2765 or send a CompuServe message via CompuServe Mail to ASP
Ombudsman 70007,3536.