option pricing model
- A mathematical approach for determining the theoretical value of an option based on variables such as underlying asset price, strike price, time until expiration, variability of the underlying asset, and risk-free interest rate
- An option pricing model was used to predict the worth of the stock options.
- The financial analyst used an option pricing model to assess the potential return on investment.
- To get an understanding of the security's worth, the broker applied an option pricing model.