Black-Scholes model — A financial option pricing model to calculate the expected value of share based payments using variables such as dividend yield, exercise period, exercise price, market price, risk free rate of return and share price volatility. The model assumes … Law dictionary
black box model — UK US noun [C] ► MARKETING, GRAPHS & CHARTS a theory or drawing that tries to explain why consumers prefer to buy particular products, services, etc. rather than the others that are available: »The chapter begins with a black box model of… … Financial and business terms
Black Scholes Model — A model of price variation over time of financial instruments such as stocks that can, among other things, be used to determine the price of a European call option. The model assumes that the price of heavily traded assets follow a geometric… … Investment dictionary
Black-Litterman Model — An asset allocation model that was developed by Fischer Black and Robert Litterman of Goldman Sachs. The Black Litterman model is essentially a combination of two main theories of modern portfolio theory, the Capital Asset Pricing Model (CAPM)… … Investment dictionary
Black Box Model — A computer program into which users enter information and the system utilizes pre programmed logic to return output to the user. The black box portion of the system contains formulas and calculations that the user does not see nor need to know to … Investment dictionary
Black Scholes model — A model used to value options. This model was developed in 1973 by Fischer Black and Myron Scholes. While not the only sophisticated, mathematically derived model for valuing options, it was the first, and it remains the best known. American… … Financial and business terms
Black-Scholes model — An option pricing formula initially derived by Fisher Black and Myron Scholes for securities options and later refined by Black for options on futures. Exchange Handbook Glossary Developed by Fischer Black & Myron Scholes in 1973, it is the… … Financial and business terms
Black \& Scholes Model — A widely used option pricing formula for European style options, which have a fixed expiry time, created by Fischer Black and Myron Scholes in 1973. It allows assessment of the value of a call option at any particular time up to expiry. ►… … Financial and business terms
Black-Scholes Model — A widely used option pricing equation developed in 1973 by Fischer Black en Myron Scholes. Used to price OTC options, value option portfolios, or evaluate option trading on exchanges … International financial encyclopaedia
the Black-Scholes model — UK US noun [S] (also the Black Scholes option pricing model) FINANCE, STOCK MARKET ► a mathematical method of calculating whether an option (= the right to buy shares within a particular period of time) has a fair value, based on the price of… … Financial and business terms
