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By far, the most popular option pricing model is the Black-Scholes model. Developed in 1973 by Fischer Black and Myron Scholes, this was the first
legitimate model to price stock options. Nearly all modern models are rooted in the Black-Scholes model, with some variations. Black and Scholes
make several assumptions regarding the option, namely,
Subsections
Charles Vu
2003-06-12