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Black-Scholes is a mathematical model used for pricing options.

Black and Scholes first proposed the model in 1973 in a paper titled "The Pricing of Options and Corporate Liabilities".

The equation at the center of the model uses partial differential equations to calculate the price of options.

In 1997, Scholes received the Nobel Prize in Economics for his work. Black was ineligible as he died in 1995.

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