This repository contains some basic code for calculating the Black-Scholes (BS) formula for European options. The used formulation includes the possibility of using the cost of carry.
I did this repo as I wanted to have a portable BS calculator that includes the carry rate without having to checkout my other git repositories. This is my first HTML/CSS/JS project and I did it just for fun.
The difference with a usual BS calculator is that the stock has a rate of return equal to b, but all cash flows are still discounted with the risk free rate r. This generate a net cost of borrowing the underlying security which is given by the difference between b and r. In the popular framework the difference is 0, whilst in reality this can be non-negative.