About the CD-ROM

INTRODUCTION

This appendix provides information on the contents of the CD that accompanies this book. For the latest updated information, please refer to the ReadMe file located at the root of the CD.

System Requirements

• A PC with a processor running at 120 Mhz or faster
• At least 32 MB of total RAM installed on your computer; for best performance, we recommend at least 64 MB
• Microsoft Excel version 2002 for Windows 2000 Service Pack 4 or later.
• A CD-ROM drive.

Note: The files that appear on this CD-ROM are designed to run under Microsoft Excel. Other spreadsheet programs are capable of reading Microsoft Excel files. However, users should be aware that the VBA functions running within the files may not work when using a program other than Microsoft Excel, or versions of Excel earlier than version 2002.

Using the CD with Windows

To install the items from the CD to your hard drive, follow these steps:

1. Insert the CD into your computer’s CD-ROM drive. Note: The interface won’t launch if you have autorun disabled. In that case, click Start-->Run. In the dialog box that appears, type D:\start.exe. (Replace D with the proper letter if your CD drive uses a different letter. If you don’t know the letter, see how your CD drive is listed under My Computer.) Click OK.

2. The CD-ROM interface will appear. The interface provides a simple point-and-click way to explore the contents of the CD.

What’s on the CD

This CD-ROM contains Excel files for implementing all of the option pricing and volatility models covered in this book. Each Excel file contains one or more VBA functions that are described in the book chapters. Some of the files contain graphs of the file content, but these may be located in a separate worksheet in the file. Other files contain option data downloaded from Yahoo! (finance.yahoo.com) and OptionMetrics (www.optionmetrics.com).

The following sections provide a summary of the software and other materials found on the CD.

Content

Each chapter of the book includes its own set of Excel files, which are contained in sub-directories named according to the chapter in which the file is described. These are arranged in the sub-directories Chapter 1 through Chapter 13. The Excel file for the Appendix is in the sub-directory Appendix, and the Excel files that contain option prices on IBM Inc. and Intel Corporation are in the sub-directory named Yahoo.

All of the option pricing and volatility models covered in this book are implemented using VBA. The contents of each Excel file appear as a figure in the book, so this is exactly what users will see when they open the files. Users can use the Excel files as template, and substitute their own data into the spreadsheet to generate their own option prices and volatility calculations.

The VBA functions can be accessed from the VBA Editor in Excel. The VBA functions are not password protected, so it is possible for them to be modified by the user. Please note, however, that doing so may introduce errors and produce results that are inaccurate. It is recommended that users familiarize themselves with VBA before attempting to change any of the VBA functions contained on the CD-ROM.

While using the files requires no programming experience or knowledge of VBA, some knowledge of Excel is recommended. The Appendix provides a brief introduction to VBA, for those readers with no prior programming experience.

Most of the graphs in the book are produced using the VBA functions contained on the CD-ROM. These graphs are contained in the Excel files also. Please note that the graphs are linked to the data contained in the files, so changing data values will alter the appearance of the graphs.

Applications

The following applications are on the CD:

Excel Viewer

Excel Viewer is a freeware viewer that allows you to view, but not edit, most Microsoft Excel spreadsheets. Certain features of Microsoft Excel documents may not work as expected from within Excel Viewer.

Shareware programs are fully functional, trial versions of copyrighted programs. If you like particular programs, register with their authors for a nominal fee and receive licenses, enhanced versions, and technical support.

Freeware programs are copyrighted games, applications, and utilities that are free for personal use. Unlike shareware, these programs do not require a fee or provide technical support.

GNU software is governed by its own license, which is included inside the folder of the GNU product. See the GNU license for more details.

Trial, demo, or evaluation versions are usually limited either by time or functionality (such as being unable to save projects). Some trial versions are very sensitive to system date changes. If you alter your computer’s date, the programs will “time out” and no longer be functional.

Troubleshooting

If you have difficulty installing or using any of the materials on the companion CD, try the following solutions:

• Turn off any antivirus software that you may have running. Installers sometimes mimic virus activity and can make your computer incorrectly believe that it is being infected by a virus. (Be sure to turn the antivirus software back on later.)
• Close all running programs. The more programs you’re running, the less memory is available to other programs. Installers also typically update files and programs; if you keep other programs running, installation may not work properly.
• Reference the ReadMe. Refer to the ReadMe file located at the root of the CD-ROM for the latest product information (if any) at the time of publication.

Customer Care

If you have trouble with the CD-ROM, please call the Wiley Product Technical Support phone number at (800) 762-2974. Outside the United States, call 1(317) 572-3994. You can also contact Wiley Product Technical Support at http://support.wiley.com. John Wiley & Sons will provide technical support only for installation and other general quality control items. For technical support on the applications themselves, consult the program’s vendor or author.

To place additional orders or to request information about other Wiley products, please call (877) 762-2974.