This tool is designed for educational purposes only. Therefore it should not be assumed that any option's premium established in the marketplace will necessarily conform or correlate with the theoretical value calculated by any model, including the model used in this tool. Under some circumstances, the premium established in the marketplace for an option may deviate substantially from that option's theoretical value.

Because theoretical models are based on a set of assumptions about the future (i.e., interest rates, dividend payments, volatility, etc) and investment based solely on theoretical values is at risk if these assumptions are no longer true.