## Microsoft Windows and Java applications

### C++ Anagram Generator

In March 2003, I rewrote my Java anagram generator in the programming language C++ to run on Windows platforms. This was mainly so I could learn about Windows programming. In the process I made a few improvements to it.

### Black-Scholes Option Pricing

In 2003, I wrote a Black-Scholes option pricing calculator for Microsoft Windows. Although this equation has been implemented thousands of times before, my motivation here is to provide a standalone Windows user interface to the model. If floating point arithmetic over or underflows the application will report it.

I assume no responsibility for the correctness of this software and it should not be used as a basis for trading decisions.

The formulas used are:
``` Call option fair price = S0N(d1) - Xe-rtN(d2) Put option fair price = Xe-rtN(-d2) - S0N(-d1) where ```

``` X is the exercise price S0 is the price of asset at time 0 N(x) is the cumulative normal distribution r is the riskless rate of interest t is the length of time until maturity d1 = ( (ln(S0/X) + rt)/(sigma * t½) ) + (½ * sigma * t½) d2 = d1 - sigma * t½ sigma is the volatility ```
``` ```

The main assumptions of this model are:

• The option is European style and so cannot be exercised before maturity.
• The underlying asset pays no dividends before maturity. Back to Martin's home page