The Black Scholes model is a calculation formula that calculates the price of theoretical option. It is used for the evaluation of the options issued by listed companies’ shares. This option refers to the right to sell or purchase something at the first determined price somewhere in the future. The Black Scholes model was announced jointly by two American economists, Mr. Fischer Black and Myrron Scholes in 1973. It was taken from these two names and named Black Scholes model. And the Black Scholes model was proved by Mr. Robert Merton. Mr. Fischer Black died in 1995, but Mylon Scholes and Robert Merton received the Nobel economics award in 1997.

It is easy to calculate the option price.

The calculation formula is the price of call option = SO × N (d1) – Kxe (- rxt) × N (d 2). SO stands for the stock price, K for the exercise price, r for the risk free rate, t for the remaining term, e for the base value of the natural logarithm. Since this Black Scholes model has been awarded the Nobel Prize in Economics, it is not easy to derive this formula, but if you enter parameters, you can immediately calculate the price of the options themselves. There are various other ways to calculate the option price, but this Black Scholes model does not take time and effort. There are various other ways to calculate the option price, but this Black Scholes model does not take time and effort. Calculating the call option with the formula of Black Scholes model increases the price of the call option when the stock price is high and the exercise price falls, and the remaining period is long, the volatility (expected volatility) is large, the risk free You can see that the rate is high.