Black-Scholes Option-Pricing Model: A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviation of the stock return. Developed by Fischer Black and Myron Scholes in 1973.

 

Related Words

Black-Scholes Option-Pricing Model: A model for pricing call options based on arbitrage arguments. Uses the stock price, the exercise price, the risk-free interest rate, the time to expiration, and the expected standard deviat . . . View Full Definition

Pie Model Of Capital Structure: A model of the debt-equity ratio of the firms, graphically depicted in slices of a pie that represent the value of the firm in the capital markets.

Physiologically Based Pharmacokinetic Model (PBPK Model): A computer model that describes what happens to a chemical in the body. This model describes how the chemical gets into the body, where it goes in the body, how it is changed by the body, an . . . View Full Definition

Quantum Models Of Speciation: Models of evolution that hold that speciation sometimes occurs rapidly as well as over long periods, as the classical theory proposed.

Simple Linear Trend Model: A regression analysis between only two variables, one dependent and the other explanatory.

Retroactive Modeling: Retroactive modeling allows types to model concepts without modifying the types in question. Retroactive modeling is very important for reusing existing data structures with new, generic algorithms.

OSI Reference Model: (Open Systems Interconnect) A network communications software standard that consists of a seven layer structure of specified protocol and services.

Network Model HMO: An HMO that contracts with more than one group practice of physicians or specialty groups.

Modeling: Representing color and lighting effects to make an image appear three-dimensional.

Modeling Light: Is a light used to create a three dimensional effect achieved through the perception of form and depth.