The historical interest rate data consists of the monthly average interest rate of the three month Treasury Bill secondary market rates. Interest rates are used by the Black & Scholes (More information is available in the Black & Scholes section at the end of this chapter.) options formulas to determine the theoretical options price.
Note: Because most futures contracts expire in under a year, we have not noticed the interest rate to make a large difference on the dollar value of an options price.
Adding an Interest Rate:
Interest rates are updated by Gecko Software, Inc. on a regular basis. However, if you would like to add a new interest rate, follow these instructions:
1. Click on the "Add Interest Rate" button and the Add Interest Rate window will open.
2. Choose the date for the effective date dropdown menu, then type the new interest rate in the input box.
3. Click on "OK" to save or "Cancel" to exit from this window.
Deleting an Existing Interest Rate:
1. Click on and select the interest rate that you would like to delete.
2. Click on the "Delete Interest Rate" button.
3. A window will open asking you to verify that you would like to delete this interest rate. Click on "YES" to continue and "NO" to cancel.
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