The Black- Scholes model of pricing applies to a wide range of options including shares, commodities and FX but does not apply to interest rate options.

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The Black-Scholes model is a mathematical model for pricing financial options. It is based on the assumption that the underlying asset price follows a geometric Brownian motion. This assumption is not valid for interest rate options, as interest rates are not normally distributed.

The Black- Scholes Model of Pricing Applies to a Wide