The term Black–Scholes refers to three closely related concepts:

* The Black–Scholes model is a mathematical model of the market for an equity, in which the equity's price is a stochastic process.
* The Black–Scholes PDE is a partial differential equation which (in the model) must be satisfied by the price of a derivative on the equity.
* The Black–Scholes formula is the result obtained by solving the Black-Scholes PDE for a European call option.

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