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  2. Black–Scholes model - Wikipedia

    en.wikipedia.org/wiki/BlackScholes_model

    In the standard BlackScholes model, one can interpret the premium of the binary option in the risk-neutral world as the expected value = probability of being in-the-money * unit, discounted to the present value. The BlackScholes model relies on symmetry of distribution and ignores the skewness of the

  3. Black–Scholes equation - Wikipedia

    en.wikipedia.org/wiki/BlackScholes_equation

    In mathematical finance, the BlackScholes equation, also called the BlackScholes–Merton equation, is a partial differential equation (PDE) governing the price evolution of derivatives under the BlackScholes model. [1]

  4. The Most Valuable Formula Ever Created - AOL

    www.aol.com/2013/05/09/the-most-valuable-model...

    The Black-Scholes option-pricing model, first published in 1973 in a paper titled "The Pricing of Options and Corporate Liabilities," was delivered in complete form for publication to.

  5. HP calculators - Wikipedia

    en.wikipedia.org/wiki/HP_calculators

    Programmable Financial calculator released in 2010. Built in Black-Scholes Equation, FMRR and MIRR. Powered by ARM processor. Multiple input methods including RPN, chain algebraic, and normal. HP 30s: 2000 Calculator designed by Kinpo Electronics, Inc. HP-32E: 1978 Scientific non-programmable HP-32S: 1988 Scientific programmable, updated to HP ...

  6. Black's approximation - Wikipedia

    en.wikipedia.org/wiki/Black's_approximation

    In finance, Black's approximation is an approximate method for computing the value of an American call option on a stock paying a single dividend. It was described by Fischer Black in 1975. [1] The BlackScholes formula (hereinafter, "BS Formula") provides an explicit equation for the value of a call option on a non-dividend paying stock. In ...

  7. Finite difference methods for option pricing - Wikipedia

    en.wikipedia.org/wiki/Finite_difference_methods...

    The approach arises since the evolution of the option value can be modelled via a partial differential equation (PDE), as a function of (at least) time and price of underlying; see for example the BlackScholes PDE. Once in this form, a finite difference model can be derived, and the valuation obtained. [2]

  8. Greeks (finance) - Wikipedia

    en.wikipedia.org/wiki/Greeks_(finance)

    The Greeks in the BlackScholes model (a relatively simple idealised model of certain financial markets) are relatively easy to calculate — a desirable property of financial models — and are very useful for derivatives traders, especially those who seek to hedge their portfolios from adverse changes in market conditions. For this reason ...

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