Tag: pricing variables

Introduction:The Black-Scholes model is a widely-used mathematical formula for pricing options. It takes various factors into account, including strike prices, to estimate a fair value for options contracts. In this article, we will delve into how the Black-Scholes model treats strike prices and its significance in options trading. Understanding the Black-Scholes Model:The Black-Scholes model was developed by economists Fischer Black and Myron Scholes in the early 1970s. It provides a framework for pricing European-style options by considering factors such as the underlying asset's current price, time to expiration, interest rates,...