ABSTRACT
In Chapter 13 we introduced the concept that the price of an option, or premium, can be expressed as an equation. The most popular and well-known of these option pricing equations is the Black-Scholes model, but there is a version known as the Black model specifically designed for options on futures. The Black model, sometimes referred to as “Black ’76” for the year it was published, is named for Fisher Black, the economist who developed it.
