Definitions for "Black-Scholes Model"
Developed by Fischer Black & Myron Scholes in 1973, it is the classic modern options pricing model for the valuation of European-style options.
The Option pricing formula initially derived by Fisher Black and Myron Scholes in 1973 for securities Options and later refined by Black in 1976 for Options on futures. The primary inputs are the underlying price, the strike price, the risk-free interest rate, time to expiration, and the standard deviation of the underlying return. The original Black-Scholes option-pricing model was developed to value options primarily on equities. It had a number of restrictive assumptions including the limitation that the underlying asset pays no dividends. The model has since been "modified" to value European options on dividend paying equities. This enhanced model is known as the Modified Black-Scholes Merton European model.
A mathematical model used to calculate the theoretical price of an option.
Keywords:  block, trade
Block Trade