BS option valuation model is also called blackscholes model. It is an option pricing formula based on lognormal distribution assumption and no arbitrage principle, which can calculate the reasonable price of European options. Income method is a method to evaluate the value of assets, which determines the present value of assets according to their future profitability and risk level.

From this point of view, BS option valuation model can be regarded as an application of income method, because it uses the expected income and risk-free interest rate of options to discount the price of options. The BS option valuation model also considers the intrinsic value and time value of the option, and the influence of the underlying asset price, exercise price, expiration time and volatility on the option price.