According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is

According to Black Scholes model, purchaser can borrow fraction of security at risk free interest rate which is short term. Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.