What Is the Name of the Most Common Model Used for Pricing European Options?

The most common and foundational model for pricing European options is the Black-Scholes-Merton (BSM) model. It uses five key inputs: the price of the underlying asset, the strike price, the time to expiration, the risk-free interest rate, and the volatility of the underlying asset.

Its simplicity is due to the assumption that the option can only be exercised at expiration.