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icharshal

India Market MCP

by icharshal

calculate_option_price

Calculate theoretical option prices using the Black-Scholes model with spot price, strike price, time to expiry, risk-free rate, volatility, and option type.

Instructions

Calculate theoretical option price using Black-Scholes model.

Input Schema

TableJSON Schema
NameRequiredDescriptionDefault
KYes
SYes
TYes
rNo
sigmaNo
option_typeNocall
Behavior2/5

Does the description disclose side effects, auth requirements, rate limits, or destructive behavior?

No annotations are present, so description must carry behavioral transparency. It mentions Black-Scholes but does not disclose assumptions (European, no dividends), output format, or limitations such as not supporting American options or dividend adjustments.

Agents need to know what a tool does to the world before calling it. Descriptions should go beyond structured annotations to explain consequences.

Conciseness4/5

Is the description appropriately sized, front-loaded, and free of redundancy?

Single sentence is concise and front-loaded with the core action. However, it could include brief parameter hints or output type without being verbose.

Shorter descriptions cost fewer tokens and are easier for agents to parse. Every sentence should earn its place.

Completeness2/5

Given the tool's complexity, does the description cover enough for an agent to succeed on first attempt?

For a tool with 6 parameters and no output schema, the one-sentence description is too brief. It lacks context on return value, model assumptions, and when to prefer it over sibling tools like calculate_greeks or get_option_chain.

Complex tools with many parameters or behaviors need more documentation. Simple tools need less. This dimension scales expectations accordingly.

Parameters2/5

Does the description clarify parameter syntax, constraints, interactions, or defaults beyond what the schema provides?

Schema description coverage is 0%, yet the description adds no explanation for parameters like S, K, T, r, sigma, or option_type. While symbols are conventional, the description does not compensate for the missing schema descriptions, leaving meaning ambiguous.

Input schemas describe structure but not intent. Descriptions should explain non-obvious parameter relationships and valid value ranges.

Purpose5/5

Does the description clearly state what the tool does and how it differs from similar tools?

Description clearly states it calculates theoretical option price using Black-Scholes, a specific model. The verb 'calculate' and resource 'option price' are precise, and it distinguishes from siblings like calculate_greeks or calculate_iv.

Agents choose between tools based on descriptions. A clear purpose with a specific verb and resource helps agents select the right tool.

Usage Guidelines2/5

Does the description explain when to use this tool, when not to, or what alternatives exist?

No guidance on when to use this tool versus alternatives like calculate_greeks or get_option_chain. The description implies its use for pricing but lacks explicit when/not-to-use context.

Agents often have multiple tools that could apply. Explicit usage guidance like "use X instead of Y when Z" prevents misuse.

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