In order to obtain a basic Black-Scholes value, so you can use it on your stock options, fill in the blanks above with the requested data. Please keep in mind that the results and the date you’ll fill in won’t be saved automatically.

Being a mathematical model on a economical market, Black-Scholes (or Black-Scholes-Merton, after the names of the academicians which conceived it) in our days came to be the most used and most important financial concept. Thanks to it, there were made the foundations of some successive option estimation models (like binomial model). The „birth” of this concept happened in 1969 (when Fischer Black came up with the brilliant idea), then in 1973 alongside Myron Scholes they publish for the first time the sketch of the model in the paper „The Pricing of Options and Corporate Liabillities” (from the Journal of Political Economy). With the help of Robert Merton in year 1997 they are distinguish with the Nobel Prize in Economics, unfortunately Fischer Black cant enjoy the success of his financial idea because he had passed away two years earlier (1995).

If you wonder what is Black-Scholes Model, then you need to know that it’s actually a formula which helps us calculate the right cost of an option contract. In our situation, option is a derivative and its cost is established on some underlying resource. In recent years binary option trading has become extremely known and appreciated because it offers possibility to invest and make profit without any high risks. In this way we don’t have to deal with stocks, commodities or bonds, we just need to make a prediction on what a stock value will be at a certain period of time. If your prediction is precise you will receive the amount of money you established when you made the prediction. This way if a stock(commodities, currencies and even aggregate market indices) loses money thru a correct assumption (which youve made using binary option trading) you’ll make profit.

In order to make a correct assumption you need to use the Black-Scholes model of valuation, in this way you can earn a decent profit using binary option trading because binary options don’t have set prices.

Because of the fact that the payout will always be expressed in percentages of the initial investment, using binary option trading you can risk the exact amount of money you want. Another extremely important aspect when using binary options is time, because it can be hours, days or even months. As we already know Black-Scholes model works independent of the expiration time of the option, the only inconvenient is introducing the variables in to the Black-Scholes formula, but this aspect will become a routine.

Extremely important is the fact that the formula generates precises values and because of this, using it you will obtain perfect results in binary option trading. You must consider the fact that Black-Scholes works at its best when you make investments with short term profit but which can continue on a long period of time, investing in a series of binary options.

It’s not recommended to hazard for big immediate winnings because this implies big risks and Black-Scholes won’t be so accurate. Before making real investments, using real money, we recommend you to exercise binary options trades using Black-Scholes model.