A »The Black-Scholes Model is a mathematical framework for pricing European-style options, helping investors determine an option's fair value. It uses inputs like the stock price, strike price, time to expiration, risk-free rate, and volatility. For example, if an investor wants to price a call option on a stock worth $100, with a $105 strike price and one month to expire, they use this model to calculate its potential market value.

A »The Black-Scholes Model is a mathematical model used to estimate the value of a call or put option. It calculates the theoretical price of options based on factors like stock price, strike price, volatility, and time to expiration, helping investors make informed decisions.