Application of the Black–Scholes option pricing model for the evaluation of investment projects

In the processes of socio-economic development we often meet the problem of evaluating investment projects and evaluation tools for such projects are very scarce. The work examines the possibility of evaluation of investment projects using the model of Black-Scholes developed for the study of option pricing in financial markets with its well-developed mathematical apparatus. To do this, the analogy between financial options and investment projects, or in other words, the investment project is presented as an optional contract. An attempt was made to spread the concept of financial options (specifically, options to purchase) on the issue of economic ef iciency analysis of investments under uncertainty and evaluation of investment projects. It is concluded that the Black-Scholes model is suitable for the evaluation of investment projects in the task of socio-economic development.