Black-Scholes Option Pricing Model
Black-Scholes
Option Pricing Model Finance Definition
A formula to calculate the value of
European style options. The formula was introduced in 1973 by Fischer Black and
Myron Scholes. The Black-Scholes formula assumes that the primary factors
affecting the price of an option are the value of the underlying asset, the
exercise price of the option, the volatility of the underlying asset, the
risk-free rate of interest, and the remaining time to expiration.
Browse dictionary entries near Black-Scholes Option Pricing Model
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