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The Black-Scholes model is a mathematical formula used to calculate the theoretical value of a European call or put option, using the current stock price,
strike price, time to expiration, volatility, and risk-free interest rate. It was first published in 1973 by Fischer Black and Myron Scholes, and has since
become widely used in the financial industry. The model assumes that stock prices follow a geometric Brownian motion and that markets are efficient, which
means that all available information is immediately reflected in stock prices. However, the model has several limitations, such as assuming that there are
no transaction costs, dividends, or taxes and that the volatility is constant.
- Code: BlackScholes
- Function1: Call Option
- Function2: Put Option
