What does Black-Scholes mean?

Black-Scholes meaning in Economics Dictionary

A formula for pricing economic choices. Its invention permitted a previously undreamed-of accuracy in prices of options (which had hitherto already been done using crude recommendations), and probably permitted the volatile growth in the areas for choices alongside types that were held after the formula became popular during the early 1970s. Myron Scholes and Robert Merton had been awarded the nobel prize for economics for his or her part in creating the formula; their co-inventor, Fischer Ebony (1938-95), ended up being ineligible, having died.