Jerry Marlow, MBA— Option Pricing: Black‑Scholes Made Easy Interactive Simulator

Investing is decision making under conditions of uncertainty. Uncertainty is defined by probability distributions. The probability distribution with which people are most familiar is the normal, bell‑shaped curve.

Every financial forecast is a probability distribution. To value a financial asset is to value the cash flows or payoffs that the asset's forecast allows for. Mathematically speaking, to value a financial asset is to evaluate its probability distribution.

Black‑Scholes Options Pricing Theory assumes that a forecast for a stock's future price is a normal, bell‑shaped curve drawn on a lognormal price axis.

The Black‑Scholes value of a call option is the area of the bell‑shaped curve above the call's strike price. The Black‑Scholes value of a put option is the area of the bell‑shaped curve below the put's strike price.

The Black‑Scholes Made Easy movie, book and simulator give you an easy way to explore, learn and master these basic concepts of modern financial theory.

Happy learning!

Jerry Marlow

(917) 817‑8659

To run simulator, download free Adobe Shockwave player.

The Black‑Scholes Made Easy Simulator is an Adobe Shockwave file. Shockwave files require that your browser have the Adobe Shockwave player installed.

Not all browsers support Shockwave. If yours does not, Firefox does. You can download Firefox for free from .

To go to Adobe and install the Shockwave player (free), click here.

In Firefox, to allow the simulator to run, you may need to allow popup. In Internet Explorer, you may need to allow blocked content.

To restart simulator from the beginning, refresh your browser window (F5).

To give yourself more room to view simulator, set browser view to full screen (F11).

To learn how to use the simulator, buy the book or download for free a few sample chapters

You can buy the book from amazon at
Option Pricing:
Black- Scholes Made Easy

To download a few sample chapters, click here.