<p>There is a relatively simple equation for options price given certain assumptions known as the black schoels equation. According to Wikipedia it is surprising that an options price is completely determined given some variables such as variation of the underlying asset's annual return. Alternatively one can deduce the variation of the asset from options price.</p>

<p>I wonder that given now we are forced to exercise the option if things are as simple? (Also I'm simply asking from the same theoretical grounds that B.S. is valid. I don't care at this point about irregularities in real future derivatives, however if one feels they have thoroughly tackled the simpler theoretical grounds in their answer, then feel free to discuss any short comings if compelled.)</p>

CC BY-SA 3.0
2018-03-18T12:58:11.520Z
Interesting there is b.s. tag, yet no notion of derivatives or futures, seems quite nonsensical.
marshal craft
CC BY-SA 3.0
2018-03-18T18:10:13.690Z
The text of this question is not clear, particularly the second paragraph. If you want the equivalent of Black-Scholes for futures, it is known as the “Black Equation” (for futures). It is very similar to B-S, but uses the forward price instead of spot price.
Brian Romanchuk
<black-scholes-model>
Is there a B.S. for futures?
marshal craft
# Is there a B.S. for futures?

(Asked by: username_0 on 2018-03-18)

There is a relatively simple equation for options price given certain assumptions known as the black schoels equation. According to Wikipedia it is surprising that an options price is completely determined given some variables such as variation of the underlying asset's annual return. Alternatively one can deduce the variation of the asset from options price.

I wonder that given now we are forced to exercise the option if things are as simple? (Also I'm simply asking from the same theoretical grounds that B.S. is valid. I don't care at this point about irregularities in real future derivatives, however if one feels they have thoroughly tackled the simpler theoretical grounds in their answer, then feel free to discuss any short comings if compelled.)

**Tags:** black-scholes-model

> **Comments:**
> **username_0**: Interesting there is b.s. tag, yet no notion of derivatives or futures, seems quite nonsensical.  
> **username_1**: The text of this question is not clear, particularly the second paragraph. If you want the equivalent of Black-Scholes for futures, it is known as the “Black Equation” (for futures). It is very similar to B-S, but uses the forward price instead of spot price.  

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