**Black** **Scholes** Model - Stock **Options** Made Easy Known as the **Black**-**Scholes** model, this formula accounted for a variety of factors that affect premium: Although the **Black**-**Scholes** formula is well known, it isn’t the only method for computing an option’s theoretical value. The *Black* *Scholes* Model is one of the most important concepts in modern financial theory. The BSM is considered the standard model for valuing *options*.

*Black* *Scholes* Calculator ERI Economic Research Institute While no model can reliably predict what **options** premiums will be available in the future, some investors use pricing models to anticipate an option’s premium under certain future circumstances. Calculate the value of stock **options** using the **Black**-**Scholes** Option Pricing Model. **Black**-**Scholes** Calculator is not intended as a basis for **trading** decisions.

**Black** **scholes** option pricing and option **trading** There can be no doubt that the development of the **Black** **Scholes** pricing model helped make **options** **trading** more viable in the eyes of investors, because it helped to change the idea that valuing **options** was little more than a guessing game. Basic *black* *scholes* option pricing theory and applications to *trading*