Black Scholes option pricing model

(BSOPM).

The Black Scholes option pricing model is an example of a risk-neutral valuation model. It models the value of European-style options on non-dividend paying assets, based on the underlying price, the strike price, the underlying volatility, the time to expiry and the risk-free rate of return.

See also

• Binomial option pricing model (BOPM)
• European-style option
• Leptokurtosis
• Model
• Option
• Risk neutral valuation
• Risk-free rate of return