{"id":165371,"date":"2022-05-06T15:43:28","date_gmt":"2022-05-06T15:43:28","guid":{"rendered":"https:\/\/theotcspace.com\/knowledge_item\/black-scholes-option-pricing-model\/"},"modified":"2022-05-06T15:43:30","modified_gmt":"2022-05-06T15:43:30","slug":"black-scholes-option-pricing-model","status":"publish","type":"knowledge_item","link":"https:\/\/theotcspace.com\/knowledge_item\/black-scholes-option-pricing-model\/","title":{"rendered":"Black-Scholes Option Pricing Model"},"content":{"rendered":"","protected":false},"excerpt":{"rendered":"<p>A method to calculate the price of a European style option (exercise on expiry date only) assuming that the underlying instrument pays a constant dividend, extraneous costs such as taxes are ignored, a constant risk-free interest rate, constant volatility and the price follows a probability distribution that is lognormal (a mathematical statistic: the logarithm of the price is normally distributed) until expiration. Although this model produces a theoretical value, it is considered the industry standard.<\/p>\n","protected":false},"template":"","meta":{"_acf_changed":false},"knowledge_category":[4247],"acf":[],"_links":{"self":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/knowledge_item\/165371"}],"collection":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/knowledge_item"}],"about":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/types\/knowledge_item"}],"wp:attachment":[{"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/media?parent=165371"}],"wp:term":[{"taxonomy":"knowledge_category","embeddable":true,"href":"https:\/\/theotcspace.com\/wp-json\/wp\/v2\/knowledge_category?post=165371"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}