Black Scholes option pricing model: Difference between revisions
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Revision as of 11:00, 21 February 2018
(BSOPM).
The Black Scholes option pricing model is an example of a risk-neutral valuation model. It models the value of European-style options on non-dividend paying assets, based on the underlying price, the strike price, the underlying volatility, the time to expiry and the risk-free rate of return.
