Black-Scholes Model

The foundational closed-form formula for pricing European options from spot, strike, time, interest rate, and volatility.

Call = S·N(d1) − K·e^(−rT)·N(d2), where d1 = [ln(S/K) + (r + σ²/2)T] / (σ√T), d2 = d1 − σ√T