Black scholes option pricing model in economics and finance

1K views Jan 29, 2024

Greetings, learners! Today, we embark on a journey to unravel the mysteries of the Black-Scholes Option Pricing Model. Developed by economists Fischer Black and Myron Scholes in 1973, this model revolutionized the field of finance. It provides a mathematical framework for valuing options, a type of derivative. Options grant their holders the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specified timeframe.

#Derivatives
#Economics
#Finance
#Investing