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That’s a reference to the Black-Scholes model. That’s a probably...

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    That’s a reference to the Black-Scholes model. That’s a probably the primary method for valuation of options, although some just use a gut-feel based on their experience with options.

    https://www.investopedia.com/terms/b/blackscholes.asp

    A bit of googling and their are excel spreadsheets. Not for the faint-hearted. The terminology can be confusing at first.
 
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