Wednesday, December 3, 2014

Intuitive Explanation for Black-Scholes Pricing Formula.

Below is a link to a reasonable good, intuitive and easy to understand explanation of the Black-Scholes Pricing Formula for a European Call Option  that I come across. Enjoy!

 http://richnewman.wordpress.com/2007/06/24/a-beginner%e2%80%99s-guide-to-the-black-scholes-option-pricing-formula-part-1/
 
 
Black-Scholes Call on European Stock
Black-Scholes d1 d2

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