A key financial insight behind the equation is that one can perfectly hedge the option by buying and selling the underlying asset and the bank account asset (cash) in such a way as to "eliminate risk". This implies that there is a unique price for the option given by the Black–Scholes formula (see the next section).
a Key fINaNciAl insIght behiNd THe EQuATIon is tHaT one can PerFEctlY HeDge the Option bY buyinG aNd seLlinG The underlying AsSEt aNd The banK Account asset (casH) In such a way as To "EliMinatE risk". thiS imPlies that thERE is a UnIque price FoR the opTiOn GIven by The blacK–ScHoles foRmuLA (seE the Next sEction).