Option Pricing Model

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Definition: Option Pricing Model

Option Pricing Model
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Full Definition of Option Pricing Model

Formula used to calculate theoretical value which relies on current stock price, anticipated dividends, option’s strike price, anticipated interest rates, anticipated stock volatility and the amount of time to expiration.

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To help you cite our definitions in your bibliography, here is the proper citation layout for the three major formatting styles, with all of the relevant information filled in.

Page URL
https://payrollheaven.com/define/option-pricing-model/
Modern Language Association (MLA):
Option Pricing Model. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
February 04, 2025 https://payrollheaven.com/define/option-pricing-model/.
Chicago Manual of Style (CMS):
Option Pricing Model. PayrollHeaven.com. Payroll & Accounting Heaven Ltd.
https://payrollheaven.com/define/option-pricing-model/ (accessed: February 04, 2025).
American Psychological Association (APA):
Option Pricing Model. PayrollHeaven.com. Retrieved February 04, 2025
, from PayrollHeaven.com website: https://payrollheaven.com/define/option-pricing-model/

Definition Sources

Definitions for Option Pricing Model are sourced/syndicated and enhanced from:

  • A Dictionary of Economics (Oxford Quick Reference)
  • Oxford Dictionary Of Accounting
  • Oxford Dictionary Of Business & Management

This glossary post was last updated: 16th November, 2021 | 0 Views.