Angel One - Share Market Trading and Stock Broking
Skip to main content
Stocks

Black-Scholes Model


Options are contracts that give the holder the right, but not the obligation, to buy or sell an underlying asset at a predetermined price within a specific time period. When valuing an option, we use a formula called the Black-Scholes model, which takes into account factors such as the current price of the underlying asset, the strike price, time to expiration, and volatility. This model helps us determine the theoretical price of an option and allows us to make informed investment decisions. Remember, options are just one tool in the complex world of finance, but understanding their valuation is crucial for successful investing.

Related terms

Proxy Statement

Understand the meaning and definition of Proxy Statement in the context of stock market, trading, and investments.

MORE
Public Float

Understand the meaning and definition of Public Float in the context of stock market, trading, and investments.

MORE
Speculator

Understand the meaning and definition of Speculator in the context of stock market, trading, and investments.

MORE
Capital

Understand the meaning and definition of Capital in the context of stock market, trading, and investments.

MORE
RSI

Understand the meaning and definition of RSI in the context of stock market, trading, and investments.

MORE
Push-Out

Understand the meaning and definition of Push-Out in the context of stock market, trading, and investments.

MORE

Open Free Demat Account!

Join our 3.8 Cr+ happy customers

+91
Explore other categories
Enjoy Zero Brokerage on Equity Delivery
10 Cr+DOWNLOADS

Enjoy Zero Brokerage On Stock Investments

Get the link to download the App

Scan this QR code to download the app
Get it on Google PlayDownload on the App Store