View source for Black-Scholes Option Pricing Model

[[Black-Scholes Option Pricing Model]] (alternatively known as [[OPM]]) is the model that is derived from the concept of a riskless hedge, this model calculates the value of an option as the difference between the expected [[PV]] of the terminal stock price and the [[PV]] of the exercise price.


==Definitions==
According to [[Fundamentals of Financial Management by Eugene F. Brigham and Joel F. Houston (15th edition)]],
:[[Black-Scholes Option Pricing Model]] ([[OPM]]). Derived from the concept of a riskless hedge, this model calculates the value of an option as the difference between the expected [[PV]] of the terminal stock price and the [[PV]] of the exercise price.

==Related concepts==
*[[Financial management]]. A combination of [[enterprise effort]]s undertaken in order to procure and utilize monetary resources of the [[enterprise]].

==Related lectures==
*[[Introduction to Financial Management]]. 

[[Category: Financial Management]][[Category: Articles]]