A closed-form solution (i.e. an equation) for valuing plain vanilla options developed by Fischer Black and Myron Scholes in 1973 for which they shared the Nobel Prize in Economics. Call Option A call option is a financial contract giving the owner the right but not the obligation to buy a pre-set amount of the underlying financial instrument at a pre-set price with a pre-set maturity date.

The most widely used method of option valuation. More complex models are sometimes necessary as it uses a number of simplifying assumptions.... more on: Black-Scholes

A complex mathematical formula created by Fischer Black and Myron Scholes; used to calculate the theoretical present value of a stock option at the grant date using variables such as stock price, exercise price, volatility, and expected option term to exercise.

A formula (named after its two inventors) which relates the premium value of an option to a combination of the value of the underlying metal, the time to expiry, the volatility of the metal and the prevailing interest rate.

An option pricing theory first published by Fisher Black and Myron Scholes in the Journal of Political Economy in May/June of 1973 and by Nobel Prize-winner Robert C. Merton (Harvard Business School) in the Spring 1973 issue of the Bell Journal of Economics and Management Science.

( 1973) option pricing formula - The original option pricing formula published by Black and Scholes in their landmark (1973) paper. Used to price European options on non-dividend-paying stocks.

Options pricing theory derived by Fisher Black and Myron Scholes, based on the theory that price volatility is random around a given trend. options

Black-Scholes option valuation model, developed by Fisher Black and Myron Scholes in 1973, is the most widely used option-pricing model to date. To determine the fair market value of an option, it takes into consideration the securities price, the exercise price, the risk free rate, the time to maturity, and the standard deviation of the underlying asset price.