Definition: The Black-Scholes equation is used to determine the value or price of a stock option. It is a comparatively simple formula, with only a few common variables, developed by Fisher Black and Myron Scholes in 1973. It makes some simplifying assumptions about free-market economics, but it has become an industry standard.
Common Misspellings: black-shoals, black shoals
Examples: Using Black-Scholes lets us compare the value of the stock options issued to our initial VPs to what the new CTO candidate is asking for.
