Divorce Dex.com: Black-Scholes Method

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Definition Black-Scholes Method - used to value or price stock options.

Application in Divorce Developed in 1973 by mathematicians Fisher Black and Myron Scholes, utilizes the stock and strike price, expiration date, risk-free return, and the volatility of the stock price.

See Valuation. Compare Binominal or Lattice Model.

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Stock Options and Divorce
Stock options can represent one of the largest assets divisible upon divorce. If this is the case, a proper value needs to be assigned to the options. This way an equitable property distribution can be awarded. The Black-Scholes Model is one of the more popular methods used for valuing stock options for divorce purposes. Don’t let yourself get shortchanged in the divorce settlement. Make sure you hire a professional who is familiar with valuing options, especially in divorce cases.

Contributed on 5/17/2007 by: DivorceDex.com Staff
Category: Property Valuations (Applicable in All States)

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Black-Scholes - Wikipedia

Wikipedia’s page devoted to the Black-Scholes Method for valuing stock options.

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