# Black-Scholes formula

A formula for pricing tradable call options.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.

See Fischer Black and Myron Scholes, 1973, The Pricing of Options and CorporateLiabilities, *Journal of Political Economy* 31, 637--654.

https://www.jstor.org/stable/1831029