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difficult terms for review.
What is the Black-sholes model used for? | It is used to calculate the premium value of an option |
How does the Back-sholes model work? | It calculates the theoretical price of European put and call options, ignoring any dividends paid during the life of the option |
Who developed the Black-Sholes Model? | Fischer Black, Robert Merton and Myron Scholes developed the Black-Sholes model in 1973 |
What are some disadvantages of using the Black-Sholes model in trading options? | The Black-Sholes Model assumes the continuous payments of dividends, constant volatility and a constant interest rate |
What is the Black-sholes model used for?
How does the Back-sholes model work?
Who developed the Black-Sholes Model?
What are some disadvantages of using the Black-Sholes model in trading options?