Black-Scholes model

noun

A mathematical model for the dynamics of a financial market containing derivative investment instruments.

Meanings

nounBlack-Scholes model (plural Black-Scholes models)

plural Black-Scholes models

  1. economicsA mathematical model for the dynamics of a financial market containing derivative investment instruments.

Origin

Named after Fischer Black and Myron Scholes, involved in its development.

Full word history & related roots →
Cite this entry
APA

Black-Scholes model. (n.d.). In WatkinsX Dictionary. Retrieved November 5, 2026, from https://dictionary.watkinsx.com/word/Black-Scholes%20model

MLA

“Black-Scholes model.” WatkinsX Dictionary, https://dictionary.watkinsx.com/word/Black-Scholes%20model. Accessed November 5, 2026.

Chicago

WatkinsX Dictionary, s.v. “Black-Scholes model,” accessed November 5, 2026, https://dictionary.watkinsx.com/word/Black-Scholes%20model.

Source: Black-Scholes model on Wiktionary, CC BY-SA 4.0.