/biz/ - Business & Finance

>>53066391
>Can someone explain the Black-Scholes formula using words

What exactly are you asking?
The symbol that looks most like an 'o' is a lowercase 'sigma'. The standard deviation. If you don't know what that is you should go watch some videos about it.

ln is 'The natural logarithm of a number is its logarithm to the base of the mathematical constant e'. You don't have to think about this too hard. You just Google it or get some machine to take it when you need it.

The rest is just what it looks like. Math is easy once you break it down into digestible parts and look at it every day.
But still, what the frick is someone who doesn't know enough math to read the model going to do with the model?
You just go on optionsprofitcalculator if you want to know which options to buy.
People use the Black-Scholes model to price options most generally and then math PhDs come up with their own models. I've heard the Black-Scholes model is shit and I've heard it is good. Probably a good one size fits all. That was before a massive AI model was probably created to price options that we don't even know about.