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OHC Trade Room · Reference

OHC glossary

Every term used across the OHC Trade Room courses, defined the way we teach it. No external definitions are substituted.

terms
553
categories
10
source modules
12

553 terms A–Z

Derivatives & Options Advanced

Black-Scholes model

Also known as Black-Scholes-Merton

The standard closed-form model for pricing European options from the underlying price, strike, time to expiry, interest rate and volatility. Reversing it against a market price is how implied volatility is calculated. It is the reference model in Module 5.2 and the origin of the Greeks.

Taught in
Module 5 — Derivatives 101 →
Level
Advanced — assumes working knowledge