Home > Term: black-scholes option-pricing model
black-scholes option-pricing model
A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviation of the stock return. Developed by Fischer Black and Myron Scholes in 1973.
- Del af tale: noun
- Branche/domæne: Financial services
- Category: General Finance
- Company: Bloomberg
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