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hello my name is sergey and in this video we are going to derive the black shoals formula hello my name is sergey in this video iamp;#39;m really excited to share with you the simplest and quickest way that you can derive the black shells option pricing formula this method does depend on making a few assumptions and using a few mathematical tools that iamp;#39;m not going to cover in this video but these tools allow you to arrive at the black shells pde relatively quickly and with a few simple steps letamp;#39;s have a look into them so in order to derive the black shells formula we begin with an options contract letamp;#39;s assume that weamp;#39;re working within the equity markets and this options contract is on a stock iamp;#39;m going to denote this option by a letter v so v s t is going to represent our option now what weamp;#39;re trying to do right now is to answer the most important question in life universe and you know weamp;#39;re trying to answer th