**OPTION** |
**DESCRIPTION** |

american |
Specifies that the stock option is American. |

black |
Use the Black-Scholes option pricing model. |

equal |
Use the equal jump model. |

impvol |
Compute the implied volatility from the Black-Scholes model. The call or put option price must be specified with OPTIONP= |

barrier= |
The barrier level for the asset price used in pricing an American down-and-out call option. |

beg= |
Specifies the BEGinning observation to be used in estimation. This option overrides the SAMPLE command and defaults to the sample range in effect. |

end= |
Specifies the ENDing observation to be used in estimation. This option overrides the SAMPLE command and defaults to the sample range in effect. |

dividend= |
Continuous dividend yield of the asset. |

numtime= |
Specifies the number of time steps in the binomial tree to use for binomial option calculations. |

optionp= |
Specifies the variable containing the option prices This is required for the IMPVOL option. |

predictp= |
Stores the predicted option prices in the variable specified. |

predictv= |
Stores the calculated implied volatilities in the variable specified. |

riskfree |
Specifies the risk-free interest rate If the interest rate is 5% enter RISKFREE=5. |

sigma= |
Specifies the standard deviation |

strikeprice= |
Specifies the stock option strike price |

time= |
Specifies the number of time periods until the stock option expires. |

up= |
Size of proportional upward move. |

down= |
Size of proportional downward move. |