What does BSM mean in UNCLASSIFIED
Black Scholes Model (BSM) is a mathematical model developed by Fischer Black, Myron Scholes and Robert Merton in 1973 that is used to price options. This model is based on the assumption of no arbitrage opportunities and has become the most widely accepted pricing model for trading options. The Black Scholes Model uses certain variables such as the stock price, time remaining until expiration, strike price, volatility of the asset, risk-free interest rate, and dividends paid to calculate the fair market value of an option.
BSM meaning in Unclassified in Miscellaneous
BSM mostly used in an acronym Unclassified in Category Miscellaneous that means Black Scholes Model
Shorthand: BSM,
Full Form: Black Scholes Model
For more information of "Black Scholes Model", see the section below.
Essential Questions and Answers on Black Scholes Model in "MISCELLANEOUS»UNFILED"
What is Black Scholes Model?
Black Scholes Model (BSM) is a mathematical model developed by Fischer Black, Myron Scholes and Robert Merton in 1973 that is used to price options. This model is based on the assumption of no arbitrage opportunities and has become the most widely accepted pricing model for trading options.
What variables does BSM use?
The Black Scholes Model uses certain variables such as the stock price, time remaining until expiration, strike price, volatility of the asset, risk-free interest rate, and dividends paid to calculate the fair market value of an option.
Is BSM still widely used today?
Yes, BSM remains one of the most widely used pricing models today for trading options.
How does BSM calculate fair market value?
The Black Scholes Model uses certain variables such as the stock price, time remaining until expiration, strike price, volatility of the asset, risk-free interest rate, and dividends paid to calculate the fair market value of an option.
Who developed BSM?
BSM was developed by Fischer Black, Myron Scholes and Robert Merton in 1973.
Final Words:
In conclusion, BSM remains one of the most widely accepted pricing models for trading options today due to its accuracy when it comes to calculating fair market value using specific variables such as stock prices, strike prices etc. It also helps traders avoid arbitrage opportunities by providing them with better decision making when investing in options trading.
BSM also stands for: |
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| All stands for BSM |