# Black-Scholes Model: Formula & Examples - Quiz & Worksheet

Instructions:

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question 1 of 3

### What is the Black-Scholes Model?

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### 2. Which of the following is NOT needed when calculating theoretical option value?

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## About This Quiz & Worksheet

The questions on this quiz and worksheet focus on the way the Black-Scholes formula is used. It also asks you about background information related to this model.

## Quiz & Worksheet Goals

You will be tested on:

• Expression of the input in the Black-Scholes formula as a percentage
• Calculating theoretical option value
• Purpose of the Black-Scholes Model

## Skills Practiced

• Reading comprehension - ensure that you draw the most important information from the lesson on the Black-Scholes Model
• Knowledge application - use your knowledge to identify how to enter an expiration of 6 months into the time maturity variable on the Black-Scholes calculation
• Information recall - access the knowledge you've gained regarding when Robert C. Merton and Myron Scholes won the Nobel Memorial Prize in Economic Studies

## Additional Learning

Learn more about financial math by reviewing the content of the lesson titled Black-Scholes Model: Formula & Examples. You can learn about the following from the lesson:

• What the formula considers
• Call and put options
• What the cumulative standard normal distribution function is
Final Exam
Chapter Exam

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