Black Scholes model consider factors which affects an option price and factors are

Black Scholes model consider factors which affects an option price and factors are spot price of asset, exercise price and exercise date of option and price volatility. 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.