Black-Scholes Model financial definition of Black-Scholes Model. Black-Scholes Model finance term by the Free Online Dictionary.

Black Scholes Model

A model for mathematically pricing options. The model takes into account the strike price, the time until the expiration date, the price of the underlying asset, and the standard deviation of the underlying asset's return. The model assumes that the option can only be exercised on the expiration date, that it will provide a risk-free return, and that the volatility of the underlying asset will remain constant throughout the life of the contract. The calculation is slightly different for calls and puts. See also: Option Adjusted Spread, Option Pricing Curve.

Black Scholes Model

What Does Black Scholes Model Mean?

A model of price variation over time in financial instruments such as stocks that often is used to calculate the price of a European call option. The model assumes that the price of heavily traded assets follows a geometric Brownian motion with constant drift and volatility. When applied to a stock option, the model incorporates the constant price variation of the stock, the time value of money, the option's strike price, and the time to the option's expiration. Also known as the Black-Scholes-Merton Model.

Investopedia explains Black Scholes Model

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 used widely today and regarded as one of the best formulas for determining option prices.

Related Terms:
• Exercise
• Option
• Standard Deviation
• Stock Option
• Strike Price

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Binomial Model Black and Scholes Model Black-Scholes Option-Pricing Model Burakku Shooruzu Katei CBOE NASDAQ Volatility Index Fischer Black Implied Volatility Option Adjusted Spread Option-Adjusted Spread Theoretical Value Vega	Scholes, the co-creator of the 1973 Black-Scholes model that revolutionized the financial industry through its valuation of derivatives, expressed his view in a recent interview with Kyodo News conducted on the eve of the second anniversary of the Sept. Economics Nobel laureate skeptical about U.S. financial reform by Japan Weekly Monitor The Black-Scholes model has five dynamic variables, remember, and volatility is among the most dynamic of all of them (along with stock price). Volatility observations on JPMorgan (JPM) and Visa (V) by Jud Pyle / Stockhouse refer=prn791 The Black-Scholes model doesn't take into account intrinsic value when valuing options, only volatility and time. Next Inning Technology Research Identifies 'Ideas for Profit During ... by PR Newswire	Black and Scholes Model Black and White Black Book Black Box Black Box Model Black Box Syndrome Black Friday Black Knight Black List Black List State Black Litterman Model Black Market Black Market Exchange Rate black mold Black Monday Black Money Black Plate Black Scholes Model Black Thursday Black Tuesday Black Wednesday Black's Guide Black-Box Accounting Black-Derman-Toy Model Black-Plate Change Black-Scholes Model Black-Scholes Option-Pricing Model Blackacre Blackberry Blackboard Trading Blackmail Blackout Blackout Period blacktop Blair House Agreement Blank Bill Blank Check Blank Check Offering Blank Check Preferred Stock Blank Stock Blank Transfer Blank-Check Company blanket Blanket Appropriation Blanket Bond Blanket Certificate of Origin Blanket Certification Form Blanket Contract Blanket Crime Policy Blanket Fidelity Bond Blanket Honesty Bond	black-marketeer black-marketeer black-marketeering black-marketeering black-marketeering black-marketer black-marketer black-marketer black-marketing black-marketing black-markets black-markets Black-mouthed Black-Mouthed Dogfish Black-mouthed mamba black-necked cobra black-necked grebe black-necked spitting cobras black-necked stilt black-necked stork Black-Out Black-Out Black-Out Black-Out Black-Out Black-Pigmented Anaerobic Rods Black-Plate Change Black-Plate Changes Black-pudding Black-Scholes Black-Scholes Model Black-Scholes Option Pricing Model Black-Scholes option-pricing model Black-Scholes Options Pricing Model Black-Scholes Pricing Model Black-Scholes-Garman-Kohlhagen black-seeded black-stem spleenwort black-stemmed spleenwort Black-striped Wallaby black-surface enclosure black-surface field black-tailed deer black-tailed deer Black-tailed gazelle Black-tailed Gnatcatcher Black-tailed Godwit Black-tailed Jackrabbit Black-tailed Prairie Dog Black-tailed Prairie Dog Black-tailed python Black-throated Blue Warbler Black-throated Gray Warbler Black-throated Green Warbler Black-throated Sparrow black-tie Black-veined Brown Butterfly Black-veined Brown Butterfly

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References in periodicals archive

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Binomial Model
Black and Scholes Model
Black-Scholes Option-Pricing Model
Burakku Shooruzu Katei
CBOE NASDAQ Volatility Index
Fischer Black
Implied Volatility
Option Adjusted Spread
Option-Adjusted Spread
Theoretical Value
Vega

Scholes, the co-creator of the 1973 Black-Scholes model that revolutionized the financial industry through its valuation of derivatives, expressed his view in a recent interview with Kyodo News conducted on the eve of the second anniversary of the Sept.

Economics Nobel laureate skeptical about U.S. financial reform by Japan Weekly Monitor

The Black-Scholes model has five dynamic variables, remember, and volatility is among the most dynamic of all of them (along with stock price).

Volatility observations on JPMorgan (JPM) and Visa (V) by Jud Pyle / Stockhouse

refer=prn791 The Black-Scholes model doesn't take into account intrinsic value when valuing options, only volatility and time.

Next Inning Technology Research Identifies 'Ideas for Profit During ... by PR Newswire

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Black-Mouthed Dogfish
Black-mouthed mamba
black-necked cobra
black-necked grebe
black-necked spitting cobras
black-necked stilt
black-necked stork
Black-Out
Black-Out
Black-Out
Black-Out
Black-Out
Black-Pigmented Anaerobic Rods
Black-Plate Change
Black-Plate Changes
Black-pudding
Black-Scholes

Black-Scholes Model

Black-Scholes Option Pricing Model
Black-Scholes option-pricing model
Black-Scholes Options Pricing Model
Black-Scholes Pricing Model
Black-Scholes-Garman-Kohlhagen
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black-stem spleenwort
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black-surface enclosure
black-surface field
black-tailed deer
black-tailed deer
Black-tailed gazelle
Black-tailed Gnatcatcher
Black-tailed Godwit
Black-tailed Jackrabbit
Black-tailed Prairie Dog
Black-tailed Prairie Dog
Black-tailed python
Black-throated Blue Warbler
Black-throated Gray Warbler
Black-throated Green Warbler
Black-throated Sparrow
black-tie
Black-veined Brown Butterfly
Black-veined Brown Butterfly

Black Scholes Model (redirected from Black-Scholes Model)

Black Scholes Model
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