How to use this tool:

• Stock Price (S): The current market price of the stock.
• Strike Price (K): The price at which the option can be exercised.
• Time to Maturity (T): The time until the option expires, in years (e.g., 3 months = 0.25).
• Risk-Free Rate (r): The return of a risk-free investment, like a government bond (e.g., 5% = 0.05).
• Volatility (σ): The stock's expected price fluctuation (e.g., 20% = 0.2).

This model calculates the theoretical price of European options, which can only be exercised at expiration.