Black-Scholes is unreliable, for at least 9 reasons. This was first pointed out by Fischer Black. The need for a pricing model is questionable. Einstein knew that all things are relative … with so ...

We’ll send you a myFT Daily Digest email rounding up the latest Markets news every morning. The writer is a professor of sociology at Edinburgh university Fierce hostility was the first reaction to ...

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 price ...

Two academics have reworked a common investment valuation model so it can cope with conditions in today’s fast-moving financial markets. The Black-Scholes model was first developed in 1973 and in 1997 ...

The Black-Scholes model estimates the fair value of European-style options using five key inputs. Model assumptions include no dividends and a constant risk-free interest rate, among others. Use an ...

Decision trees are major components of finance, philosophy, and decision analysis in university classes. Yet, many students ...

If we look back over the history of modern financial markets, one of the most influential developments was the Black-Scholes option pricing formula. However, there are a number of misconceptions ...

The most common model for determining the price of options, their implied volatility and the value of employee stock options. The Black-Scholes model is a function of five variables: strike price, ...

Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors. In previous posts, we provided examples of pricing European and American options in Excel. For pricing the ...