Black Scholes Model

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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.
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Both recipients are recognized for their significant contributions to the financial markets, including the discovery and development of the Black-Scholes options pricing model, used to determine the value of options derivatives.
Buck professor of finance, emeritus, at the Stanford Graduate School of Business, Nobel laureate in economic sciences, and co-originator of the Black-Scholes options pricing model.
Sharpe, creator of the Sharpe Ratio for risk-adjusted return analysis, and Fischer Black, co-author of the Black-Scholes options pricing model.
According to experts, the Black-Scholes options pricing model is not designed to deal with options having the characteristics of those granted to employees, so the initial value will not even represent an accurate starting point.
Based on the premise that patents are call options on technology, TRRU Metrics was developed as a derivative of the Nobel Prize-winning Black-Scholes options pricing model.
By using the Black-Scholes Options Pricing Model as the engine of their TRRU Metrics system, pl-x is adopting a powerful and well established financial formula and creating a new standard for valuing intellectual property," said Yago.
Based on the Nobel Prize-winning Black-Scholes Options Pricing Model and the recognition that patents are actually call options on technology, TRRU Metrics uses specific information about a patent along with live market data from more than 1,500 publicly traded micro-cap companies that are developing specific niche technologies to generate a reasonable market-driven valuation for that patent.
TRRU Metrics uses live-market data from more than 1100 "pure-play" micro-cap companies and the Noble Prize winning Black-Scholes Options Pricing Model to generate an estimate of value for intangible assets.
Using the Nobel Prize winning Black-Scholes Options Pricing Model and live-market financial data, TRRU Metrics can provide an estimate of value for every patent in a company's intellectual property portfolio.
Based on the Nobel Prize-winning Black-Scholes Options Pricing Model and the recognition that patents are actually call options on technology, TRRU Valuation provides pl-x subscribers with a standardized financial tool for unlocking the value of their intangible assets.
He is co-originator of the Black-Scholes options pricing model -- the basis of the pricing and risk-management technology used to value and to manage the risk of financial instruments around the world.
As a result, pl-x can apply the same financial formula that professional option traders have used for years to value call options -- the Black-Scholes Options Pricing Model," said Alexander Arrow, CFO and vice president, TRRU Metrics.