Black-scholes model is a foundational mathematical model in quantitative finance used for the theoretical estimation of the price of European-style options. It investigates the dynamics of option pricing by considering factors such as the underlying asset's price, time to expiration, volatility, risk-free interest rate, and strike price, assuming the asset price follows a geometric Brownian motion and that trading is continuous with no transaction costs. Its significance lies in providing a widely adopted framework for valuing derivatives and informing hedging strategies, despite its reliance on idealized assumptions.