The Black-Scholes formula is a fundamental result in mathematical finance, which explains how to set the price of options (under suitable assumptions). We will introduce options, derive the Black-Scholes formula, and explain the financial insight behind the formula. It will be assumed the audience knows what a partial derivative is, but techniques for solving partial differential equations will not be required.

If time permits, after the talk I will explain a little bit about what life is like as a “quant” and answer any questions students have about careers in finance.