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To: Brian1970 who wrote (1583)	5/11/1999 5:11:00 PM
From: Black-Scholes	Read Replies (1) \| Respond to of 6531

The Black-Scholes equation was derived back in 1973. In a seminal paper published in the Journal of Finance, Myron Scholes and Fischer Black proved that a European call option (or put option via put/call parity) could be valued using the normal distribution, historical volatility, the risk-free interest rate, time to expiration, and any known dividends. It's validity has never been challenged and is used today to value the "lower" bounds of value for American options.