Questions tagged [black-scholes-model]

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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 ...
2
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0answers
83 views

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 ...
2
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0answers
155 views

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 ...
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177 views

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 ...