Business and Economics Reporting
The Black-Scholes Model is a mathematical model used to calculate the theoretical price of options, which are financial derivatives. This model provides a formula for pricing European-style options based on various factors including the underlying asset price, strike price, time to expiration, risk-free interest rate, and volatility of the underlying asset. By helping traders assess the value of options, the Black-Scholes Model plays a critical role in the derivatives market.
congrats on reading the definition of Black-Scholes Model. now let's actually learn it.