Black-Scholes Model

Black-Scholes Option Pricing Model
The Black-Scholes Option Pricing Model, developed by Fischer Black and Myron Scholes, is a mathematical model used to determine the fair value of options by incorporating factors such as volatility, interest rates, stock prices, exercise prices, and time until expiration.
OPM (Other People’s Money)
A term frequently used on Wall Street to describe the use of borrowed funds by individuals or companies to increase the return on invested capital, as well as an acronym for the options pricing model.

Accounting Terms Lexicon

Discover comprehensive accounting definitions and practical insights. Empowering students and professionals with clear and concise explanations for a better understanding of financial terms.