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Black-Scholes Option Pricing Model

Black-Scholes Option Pricing ModelNathan CoelenJune 6, 20021 IntroductionFinance is one of the most rapidly changing and fastest growing areas in thecorporate business world. Because of this rapid change, modern financialinstruments have become extremely complex. New mathematical models areessential to implement and price these new financial instruments. The worldof corporate finance once managed by business students is now controlled bymathematicians and computer the early 1970 s, Myron scholes , Robert Merton, and Fisher black madean important breakthrough in the Pricing of complex financial instruments bydeveloping what has become known as the Black-Scholes Model . In 1997, theimportance of their Model was recognized world wide when Myron Scholesand Robert Merton received the Nobel Prize for Economics.

Black-Scholes Option Pricing Model Nathan Coelen June 6, 2002 1 Introduction Finance is one of the most rapidly changing and fastest growing areas in the corporate business world. Because of this rapid change, modern nancial instruments have become extremely complex. New mathematical models are

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