Black's Model

What Does Black's Model Mean?
A variation of the Black-Scholes model that allows for the valuation of options on futures contracts.

Investopedia explains Black's Model
In 1976, Fisher Black, one of the developers of the Black-Scholes model (introduced in 1973), demonstrated how the Black-Scholes model could be modified in order to value European call or put options on futures contracts.

Related Terms

Black-Litterman Model
Black-Scholes Model
Financial Modeling
Financial Modeling
Futures Contract
Merton Model
Option Pricing Theory
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