Resolution functions are predefined formulas that perform calculations by using specific values, called arguments, in a particular order, or structure. The functions return either an individual value or an array/table of values.

For example, consider the oBS( ) function, which calculates the value of a vanilla option using the Black-Scholes closed-form option pricing model. The required arguments for this function are listed below.

oBS( )

Arguments/Inputs

Example

Comment

.

CallPut

1

call

ValueDate

1/6/03

MaturityDate

1/6/04

Spot

100

Exercise

100

Volatility

0.25

RiskFree

0.06

Flag

1

Return value only

.

Option Value

12.7772

For help on the alternative ways to enter a function into Excel, see Inserting Resolution Functions.