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Questions tagged [black-scholes-model]

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"risk free interest rate" in Black Scholes

In Black Scholes model r is defined as risk free interest rate. Could you please explain what is risk free? Is it same as ...
Slartibartfast's user avatar
1 vote
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Can i get rich if i apply the Black Scholes equation or other mathematics in economy? [closed]

Is it the Black-Scholes equation useful if i want to invest in stock market ? how can i profit from using this equation in stock market ?
Jose Javier Garcia's user avatar
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Is there a B.S. for futures?

There is a relatively simple equation for options price given certain assumptions known as the black schoels equation. According to Wikipedia it is surprising that an options price is completely ...
marshal craft's user avatar
2 votes
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Black-Scholes Formula Satisfies Black-Scholes Equation

My professor told me that each term of the Black-Scholes formula satisfy the Black-Scholes PDE. I have been trying to work this out for the last week and have been unsuccessful. I correctly showed the ...
DornerA's user avatar
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3 votes
1 answer

Black-Scholes - Theta formula Futureoption Currencyoption

I cannot figure out how the theta-formula would look like for a future option and a currency option. I know the formula and understand it for an ordinary stockoption - but not for future-option and ...
Björn Hallström's user avatar
5 votes
1 answer

The relation between the Black-Scholes model and quantum mechanics [closed]

As an active participant on the Physics Stack Exchange I have, on several separate occasions, run into some vague remarks about the 'intimate relation' between the famous Black-Scholes model in ...
Danu's user avatar
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