The risk-free rate is missing from d₁ in the Black model because it is effectively zero.

Name: The risk-free rate is missing from d 1 in the Black model because it is effectively zero.
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Quizplus · Accepted Answer

The Black model, an adaptation of the Black-Scholes model for futures, omits the risk-free rate because it deals with futures contracts, which already incorporate the cost of carry (including interest rates) in their pricing, not because the risk-free rate is effectively zero.

The Risk-Free Rate Is Missing from D1 in the Black

The Risk-Free Rate Is Missing from D₁ in the Black