Black-Scholes Model

Black-Scholes Model definition - business

Black-Scholes Model

A relatively complicated mathematical formula for valuing stock options. The Black-Scholes model is used in options pricing to determine whether a particular option should be selling at a price other than the one at which it currently trades.

The American Heritage® Dictionary of Business Terms Copyright © 2009 by Houghton Mifflin Harcourt Publishing Company. Published by Houghton Mifflin Harcourt Publishing Company. All rights reserved.

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