function output = BSCall(S, K, r, T, sigma)
% Copyright (c) 2001-2009 by Ales Cerny

%************************************************************************%
% BSCall.m - supplementary program to                                    %
% Ales Cerny (2009) Mathematical Techniques in Finance (2nd ed.)         % 
% Princeton University Press http://press.princeton.edu/titles/9079.html %
%************************************************************************%
    
% This code is provided 'as-is', without any express or implied warranty.  
% 
% Permission is granted to anyone to use this code for any purpose, 
% subject to the following restrictions:
% 
% 1. The origin of this code must not be misrepresented; you must not
%    claim that you wrote the original code.
% 2. Modified code versions must be plainly marked as such, and must not 
%    be misrepresented as being the original code.
% 3. This notice may not be removed from any source distribution.

% NOTICE TO STUDENTS: To avoid accusations of plagiarism, if you use this 
% code or its modifications in assessed work you should prepend it with a 
% note stating: 
%   "This is the original/modified version of the code BSCall.m by 
%    Ales Cerny (2009), Mathematical Techniques in Finance (2nd ed.),  
%    Princeton University Press. The original version is available from 
%    http://www.martingales.info/mtfweb2".
% A similar acknowledgement should appear prominently inside your written 
% report.

d1 = (log(S/K)+(r+sigma^2/2)*T)/(sigma*sqrt(T));
d2 = (log(S/K)+(r-sigma^2/2)*T)/(sigma*sqrt(T));
output = S*normcdf(d1)-K*exp(-r*T)*normcdf(d2);

function output = normcdf(x)
output = 0.5*erfc(-x/sqrt(2));