What is the Black-Scholes Model?

Option pricing model (OPM)-proposed by Black and Scholes in the 1970s. The model believes that only the current value of the stock price is related to future forecasts; the past and evolution of the variables are not related to future forecasts. The model shows that the decision of the option price is very complicated, and the contract period, the current price of the stock, the interest rate level of the risk-free asset, and the delivery price will affect the option price.