black scholes model explained

The Black Scholes Model Explained

The Black Scholes (Merton) model has revolutionized the role of options and other derivatives in the financial market. Its creators Fischer Black, (Myron Scholes) and Robert Merton have even won a Nobel Prize for it in 1997. Still today, the Black Scholes model plays a huge role in the world of derivatives and options trading. In this article, I will breakdown the Black Scholes formula, its implications about how options are priced, and much more. Read more