Questions tagged [black-scholes]
Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.
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Black Scholes PDE vs closed form
What is the difference between the 2 formulas below, how and why we choose what to use? Does PDE simulate option price through time, therefore we can use it for American options as well?
Black Scholes ...
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Price of a Call Option as you Increase the time periods
I'm pricing call options at the moment and seeing how call option prices change depending solely on the periods of volatility. In one case the stock changes every month, the other it changes every ...
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