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Black Scholes Pricing Model


What does Black Scholes Pricing Model mean?

A European option pricing model. The Black Scholes model is a method for calculating fair price of European call and put options on commodities and commodity futures. The computation is based on price of the underlying asset and carrying cost, besides other parameters. However, the formula ignores any dividends paid during the option's lifetime.

Futures Knowledge Explains Black Scholes Pricing Model

The Black Scholes Model is a method of determining fair prices of European options.The Black Scholes Model was developed by Fisher Black, Robert Merton and Myron Scholes is 1973. It was a significant contribution to modern financial theory and was awarded Noble Prize also. This is also known as the Black-Scholes-Merton Model.



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