... sciences for their efforts. Their colleague Fisher Black hadunfortunately passed away in 1994. (Royal Swedish Academy of Sciences,1997).The History of the ModelIn 1973, the Chicago Options ... but in all of economics.” (Stix, 1998) Options 2The functioning of the Black- Scholes Model is based on the use of stock options. Stock options are a form of financial derivative (an item that ... options. “American-Style” options can be exercised anytime (Dammers, 1998). American options are more flexible, thus more valuable. The model only takes European- style options into account. Thus,...