Black–Scholes model

Simulated geometric Brownian motions with parameters from market data

A European call valued using the Black–Scholes pricing equation for varying asset price S and time-to-expiry T. In this particular example, the strike price is set to unity.

The normality assumption of the Black–Scholes model does not capture extreme movements such as stock market crashes.

The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model of a financial market containing derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives a theoretical estimate of the price of European-style options. The formula led to a boom in options trading and legitimised scientifically the activities of the Chicago Board Options Exchange and other options markets around the world. lt is widely used, although often with adjustments and corrections, by options market participants. Many empirical tests have shown that the Black–Scholes price is "fairly close" to the observed prices, although there are well-known discrepancies such as the "option smile".

单词	Black Scholes model
释义	Black Scholes model 英语百科 Black–Scholes model The Black–Scholes /ˌblæk ˈʃoʊlz/ or Black–Scholes–Merton model is a mathematical model of a financial market containing derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives a theoretical estimate of the price of European-style options. The formula led to a boom in options trading and legitimised scientifically the activities of the Chicago Board Options Exchange and other options markets around the world. lt is widely used, although often with adjustments and corrections, by options market participants. Many empirical tests have shown that the Black–Scholes price is "fairly close" to the observed prices, although there are well-known discrepancies such as the "option smile".
随便看	acceptance bank acceptance before reservoir impoundment Acceptance bill acceptance board acceptance bonus acceptance book acceptance boundary acceptance business acceptance by intervention acceptance by other offices acceptance certificate acceptance charge acceptance check acceptance check of turbine foundation acceptance cheek acceptance clause acceptance coefficient acceptance commission acceptance condition acceptance conditions Acceptance cone acceptance contract acceptance control chart acceptance control limit acceptance corporation

Black Scholes model

Black–Scholes model