The Black-Scholes formula is a formula and market model for explaining or determining the price of European-style options. It was developed in 1973 by two world-renowned economists, Fischer Black and Myron Scholes, and it led to a Nobel Prize in 1997.
As opposed to the American-style of options, which can be exercised at any time, European-style options can only be exercised on their expiration date, they are not exposed to dividends, and they have no commission structure to consider. Some are content to use Black-Scholes for quick applications to American-style, but It is not as accurate as it should be.
There are adaptations of the formula which can make it useful for American style options, incorporating dividends and other differences, but these formulas are not easily accessible or widely known. If you assume that American call options are rarely exercised early, and if the call is on an asset which doesn’t pay dividends, the Black-Scholes Formula should work fine.
The variables that must be input to the Black-Scholes Formula are: the strike price, the current price of the underlying, time until expiration, volatility of the asset, and the risk-free rate.
Annuities are unique products in that they provide the owner with tax-deferred growth, much like an IRA or a Roth IRA
Minimum investments into venture capital funds tend to be vast sums of money. They tend to be for $1 million or more
A 10-k is an annual filing required by the SEC for companies over $10 Mil, which provides the regulators with more detail
The fixed assets to net worth ratio is a calculation intended to measure the solvency of a company
Credit debt or credit card debt is a type of consumer debt that is incurred through a short-term revolving loan facility
Chapter 13 bankruptcy is one of the most often used. It is similar to a Chapter 7, but it does not have income limits
Publication 502 is a source of information regarding deductions stemming from medical and dental expenses and insurance
The Broadening Bottom pattern forms when a stock price makes higher highs and lower lows following two widening trends
The Broadening Wedge Ascending pattern forms when a stock price progressively makes higher highs and higher lows