Black-Scholes(BS) model is a mathematical model used to calculate the European option price. It is based on some assumptions, including that the market is efficient, asset prices obey geometric Brownian motion, and there is no arbitrage opportunity.

The option pricing formula of BS model is as follows:

c = s * n(d 1)-x * e^(-r * t)* n(D2)

p = x * e^(-r * t)* n(-D2)-s * n(-d 1)

Among them,

C stands for the price of call option,

P stands for the price of put option,

S represents the current price of the underlying asset,

X represents the strike price of the option,

R stands for risk-free interest rate,

T represents the remaining term (year) of the option,

N(d 1) and N(d2) respectively represent the corresponding values in the standard normal distribution function.

D 1 and d2 in the formula are calculated as follows:

d 1 =(ln(s/x)+(r+0.5 * σ^2)* t)/(σ* sqrt(t))

d2 = d 1 - σ * sqrt(T)

Among them,

Ln stands for natural logarithm,

σ represents the volatility of the underlying assets.

It should be noted that the BS model is based on some assumptions and preconditions, which may deviate from these assumptions in the actual market. In addition, BS model is suitable for European options, and other types of options may need other pricing models.

When using BS model to calculate option price, you need to input parameters such as the underlying asset price, exercise price, risk-free interest rate, remaining term, volatility and so on. At the same time, the model is only an estimate of the option price, and the actual market price may be affected by factors such as supply and demand and market sentiment. Therefore, in practical application, investors should make comprehensive evaluation and decision based on market conditions and other analytical tools.