The Black-Scholes Model is a cornerstone of financial economics, revolutionizing options pricing and modern finance. Developed by Fischer Black and Myron Scholes in 1973, it provides a mathematical framework for valuing options and derivatives. This research thoroughly examines the Black-Scholes Model, encompassing its historical context, theoretical foundations, practical applications, limitations, and critically reviews the existing literature on the proposed exact as well as the numerical solutions to the Black-Scholes model and recent advancements. By analyzing its multifaceted aspects, this paper aims to deepen understanding and shed light on its significance in contemporary financial markets

Black-Scholes Model, Options Pricing, Financial Economics, Fischer Black, Myron Scholes

The Black-Scholes Model has profoundly impacted financial economics, revolutionizing how options are priced, traded, and managed. Developed by Fischer Black and Myron Scholes in 1973, the model provides a rigorous framework for valuing options, incorporating dynamic hedging strategies and the no-arbitrage principle. Despite its simplicity and elegance, the Black-Scholes Model assumes constant volatility and frictionless markets. However, recent advancements in options pricing theory and methodology have sought to address these limitations and develop more robust pricing models. Models incorporating stochastic volatility, jumps, and skewness offer improved accuracy and realism in capturing the complexities of financial markets. Moreover, advancements in computational techniques have facilitated the development of sophisticated numerical methods for valuing complex options and derivatives. The Black-Scholes Model will likely remain a fundamental tool in financial economics, providing valuable insights into options pricing and risk management. However, ongoing research and innovation are essential to refine and extend the model's capabilities, particularly in the face of evolving market conditions and regulatory changes. By staying abreast of recent advancements and emerging trends in options pricing, researchers and practitioners can navigate the complexities of financial markets more effectively and make informed investment decisions

Shivangi Asati, R.K. Gangele and Bhagwan Kumar (2024). The Black-Scholes Model: A Comprehensive Analysis. International Journal on Emerging Technologies, 15(2): 13–18.