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


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What is the Black-Scholes Model?

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1. In what year did Robert C. Merton and Myron Scholes win the Nobel Memorial Prize in Economic Studies?

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