InvestorWords.com

Any one of several methods and models used in technical analysis in attempts to find the fair price of a futures or options contract. For example, the Black-Scholes Option Pricing Model is used frequently when trying to find the fair price of a financial instrument. Derivative pricing models tend to be complex if not difficult, but some computer software and programs have made using such models easier.

• Benefits and Risks Associated with Bonds
• Initial Public Offerings
• A Guide to Filing Your Tax Returns
• ETF Wraps
• Index Funds and ETFs
• Figuring out the Best Car Type for You

Featured Advertiser