
	
function v=calloptstud(u,S0,ex,r,sigma,T,nu)
	
   % value of the integrand for a call option with exercise price ex, r=annual interest
   % rate, sigma=annual vol, S0=current stock price. u=uniform (0,1) input t
%generate student t (with nu degrees of freedom) variate by inverse transform. T=maturity
% to compare with Black-Scholes price, integrate over (0,1) or simulate using 
%U=rand(1,100000); mean(calloptstud(U,S0,ex,r,sigma,T,nu));
x=S0*exp((tinv(u,nu)+r*T-sigma^2*T/2)*sigma*sqrt(T))); %\ \ \ stock price at time T
v=exp(-r*T)*max((x-ex),0);  % \ This is the discounted to present value of the call option}