Definitions for "Black-Scholes option pricing model"
Mathematical formula used to analyze the value of options contracts. Developed by Fischer Black and Myron Scholes, this model takes into account the underlying stock's price and volatility, the option's strike price and expiration date, interest rates, and dividends. The Vision Web site's options analysis tool shows the Black-Scholes valuations of options.
A model used to calculate the value of an option, by considering the stock price, strike price and expiration date, risk-free return, and the standard deviation of the stock's return.
A model developed to estimate the market value of option contracts.