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What is The Black Scholes Equation?

Learn about Black Scholes Equations and how they relate to the markets and options trading.

Black Scholes Equation

The Black Scholes equation is used to price put and call options. It is a partial differential equation that describes the price of an option as a function of time, strike price, and volatility. It was developed by Fischer Black and Myron Scholes in 1973.

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