Option Pricing Model Law and Legal Definition
Option pricing model refers to a mathematical model used to calculate the theoretical value of an option. Inputs to option pricing models include the price of the underlying instrument, the option strike price, the time remaining till the expiration date, the volatility of the underlying instrument, and the risk-free interest rate.
There are several option pricing models that can be used to calculate grant date present value, including the Black-Scholes model and the binomial option pricing model. [Bader v. Blankfein, 2008 U.S. Dist. LEXIS 102698 (E.D.N.Y. Dec. 18, 2008)].
Legal Definition list
Related Legal Terms
- Abandonment [Intercountry Adoption]
- Abandonment Option
- Absorption Pricing
- Accredited Agency [Adoption]
- Accredited Body [Adoption]
- Accrediting Entity [Adoption]
- Adoption
- Adoption and Foster Care Analysis and Reporting System (AFCARS)
- Adoption and Safe Families Act (ASFA)
- Adoption Assistance and Child Welfare Act of 1980
