derivative pricing models

Definition

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.
Browse Definitions by Letter: # A B C D E F G H I J K L M N O P Q R S T U V W X Y Z
derivative market derivative security