A modified Black-Scholes algorithm used for pricing options. While the Black-Scholes algorithm has been a mainstay in the financial world, its assumptions do not accurately reflect the marketplace of long-term options, and other securities and assets. Since markets tend to rise over time, the existing Black-Scholes algorithm tends to underprice and undervalue options and other securities due to the model's assumption of normal distribution. The system and method of the present invention corrects for assumptions in the Black-Scholes Algorithm by accounting for the long-term bias of markets to increase over the long-term.
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