README.md

Black-Scholes Option Pricer (BSOP)

A fast and efficient option pricing tool built with Next.js frontend and Python FastAPI backend, dockerized for easy deployment.

Prerequisites

• Docker
• Docker Compose

Quick Start

1. Clone the repository:

   git clone https://github.com/adamDucken/bsop_next_fast.git
   cd bsop_next_fast

2. Run the setup script:

   chmod +x setup.sh
   ./setup.sh

3. Access the application:

   • Frontend: http://localhost:3000
   • Backend API: http://localhost:8000

   If you fail to access the app in these places, follow the instructions of the setup script.

Usage

Enter the following parameters to calculate option prices:

• Stock price (decimal)
• Strike price (decimal)
• Time to maturity (in years)
• Risk-free rate (percentage as decimal, e.g., 5% → 0.05)
• Volatility (percentage as decimal)

The tool will calculate both call and put option prices using the Black-Scholes model.

Architecture

• Frontend: Next.js with Tailwind CSS and Shadcn UI
• Backend: Python FastAPI
• Containerization: Docker and Docker Compose

Development

To modify the services:

1. Update the code in bsop_next (frontend) or bsop_fast (backend)
2. Rebuild the containers:

   docker-compose down
   docker-compose up --build

Note: This project is under active development. Features and setup process may change.