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The Black-Scholes Theorem

The Black-Scholes Theorem

This is a key concept in modern financial theory used for valuing European options and employee stock options.

Investors can use an online options calculator to get results by adding an option's strike price, the underlying stock's price, the option's time to expiration, its volatility, and the market's risk-free interest rate.
Robert Merton and Myron Scholes won the 1997 Nobel Prize in economics for the Black-Scholes theorem.

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