← Options Glossary A mathematical formula designed to price an option as a function of certain variables - generally stock price, striking price, volatility, time to expiration, dividends to be paid, and the current risk-free interest rate. The Black-Scholes model is one of the more widely used models.
Model
This is a definition, not a recommendation. Options carry risk and can expire worthless. See how the desk actually trades at TrueTrader.