Oddz
  • 🏁Getting Started
  • 🔢Learning the Basics
    • 🔄Options Jargon
    • ⚖️Call vs Put Options
    • ♈Option Greeks
    • 📊Option Strategies
    • 💰Black Scholes Pricing Model
  • 🛠️How does Oddz work?
  • 🎡What Oddz Offers?
    • Oddz Options v2
  • 🤝Oddz DEX Integration
    • Developer Integration Guidelines:
  • 💵Fee Collection and Distribution
  • ❓FAQs
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  1. Learning the Basics

Black Scholes Pricing Model

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Last updated 3 years ago

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The Black-Scholes-Merton (BSM) model is a pricing model for financial instruments. It is used to determine the value of options. The BSM model is generally used to calculate the fair value of stock options based on six different variables: volatility, type, underlying stock price, strike price, period, and the risk-free rate. It is based on the hedging principle and aims to eliminate risks associated with the volatility of underlying assets and stock options.

Here’s a theoretical deep dive into the

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Black-Scholes-Merton (BSM) model
Black-Scholes-Merton (BSM) model