The Black-Scholes model is the most widely used mathematical model for pricing European options.
Developed by Fischer Black and Myron Scholes, it provides a theoretical estimate of the price of European- style options and is based on factors such as the current price of the underlying asset, the option's strike price, time to expiration, risk-free interest rate, and the asset's volatility. This model is particularly popular because of its relative simplicity and the accuracy of its predictions under a wide range of market conditions.
References:The extensive use and details of the Black-Scholes model for European options are elaborated in the "How Finance Works" document.