By Brian M. Reiser The Black Scholes Model is a mathematical options pricing model used to determine the prices of call and put options. The standard formula is only for European Options, but it can be adjusted to value American Options as well.
This mathematical formula is also known as the Black-Scholes-Merton (BSM) Model, and it won the prestigious Nobel Prize in economics for its groundbreaking work in pricing options.
In this article, we will look at the basics of the formula to gain a better understanding of what it is and how it works. By the end of this article, you should have a foundation …read more
