[from Wikipedia] The Black–Scholes model (pronounced /ˌblæk ˈʃoʊlz/) or Black–Scholes-Merton is a mathematical model of a financial market containing certain derivative investment instruments. From the model, one can deduce the Black–Scholes formula, which gives the price of European-style options. The formula led to a boom in options trading and the creation of theChicago Board Options Exchange. lt is widely used by options market participants. Many … Continue reading