The Black–Scholes model is a mathematical description of financial markets and derivative investment instruments. The model develops partial differential equations whose solution, the Black–Scholes formula, is widely used in the pricing of European-style options.A model of price variation over time of financial instruments such as stocks that can, among other things, be used to … [Read more...]
Black-Scholes Model Explained
The Black Scholes Model is one of the most important concepts in modern financial theory. It was developed in 1973 by Fisher Black, Robert Merton and Myron Scholes and is still widely used today, and regarded as one of the best ways of determining fair prices of options. The Black Scholes Model can be described as a model of price variation over time of financial instruments … [Read more...]