The Black-Scholes model and valuation of the European Call option

  • Limonka Lazarova
  • Marija Miteva
  • Natasa Stojkovik


In this paper will be considered the simple continuous time model of Black-Scholes. The Black-Scholes formula for valuation of the European Call Option will be shown. It will be given a review of the background of this model and also the basic concepts of stochastic or Ito calculus that are necessary to explore the model.


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ISSN 1450-2887 Issue 68 (2011), © EuroJournals Publishing, Inc. 2011

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