The Black/Scholes’ Model

In 1973, Fischer Black and Myron Scholes developed the Black/Scholes’ model to evaluate European call options. In 1976, Fischer Black modified the Black/Scholes’ model to apply it to futures options. Black’s modified model became known as the Black model. Since then, other mathematical models designed to help traders understand the world of options have emerged.

Aspen Graphics uses a generalized version of the Black/Scholes’ model that can be used to model future options (Black) and foreign currency options (Garman Kohlhagen), as well as stock and index options (Black/Scholes’).

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