Advanced Corporate Finance
The Black-Scholes Model is a mathematical model used for pricing European-style options, which helps investors determine the fair market value of options based on various factors. This model takes into account the current stock price, the option's strike price, time until expiration, risk-free interest rate, and the stock's volatility. By providing a theoretical estimate for option pricing, the Black-Scholes Model is instrumental in assessing investment strategies and managing financial risk.
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