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So today weamp;#39;re going to use the black shows more than actually price an actual derivative namely a European call on an Apple share but letamp;#39;s review what we have done so far so this is the important equation we have derived in the last videos this is the Black Shoals pricing equation and we used risk neutral pricing and said that the price of any derivative is given by in a black Shields model is given by the integral of the standard normal distribution multiply it with the derivative function f which is dependent on the underlying or how the underlying acid evolves and we want to use this equation to price a call option and letamp;#39;s think about what a call option is so a call option gives you the option to buy an acid at the asset price in some at some time in the future and you have to pay a specified price for this acid which we call K and you specify this price before so we can simplify this a bit and say okay if my underlying is greater than this strike price k