The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model for the dynamics of a financial market containing derivative investment...

equation (PDE) governing the price evolution of derivatives under the Black–Scholes model. Broadly speaking, the term may refer to a similar PDE that can be...

The Black model (sometimes known as the Black-76 model) is a variant of the Black–Scholes option pricing model. Its primary applications are for pricing...

called "Normal Model" equivalently (as opposed to "Log-Normal Model" or "Black-Scholes Model"). One early criticism of the Bachelier model is that the probability...

Myron Samuel Scholes (/ʃoʊlz/ SHOHLZ; born July 1, 1941) is a Canadian–American financial economist. Scholes is the Frank E. Buck Professor of Finance...

0 , T ∗ ] {\displaystyle t\in [0,T^{*}]} . When dealing with the Black-Scholes model, we may equally well replace the savings account by the risk-free...

(lattice based) model of the varying price over time of the underlying financial instrument, addressing cases where the closed-form Black–Scholes formula is...

in particular, it is used in mathematical finance to model stock prices in the Black–Scholes model. A stochastic process St is said to follow a GBM if...

produced by Black–Scholes, to the desired degree of precision. However, the binomial model is considered more accurate than Black–Scholes because it is...

Stochastic volatility models are one approach to resolve a shortcoming of the Black–Scholes model. In particular, models based on Black-Scholes assume that the...