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This article applied the Black-Scholes option valuation formula to calculating high-cost illness reinsurance premiums in the Colombian health system. The coverage pattern used in reinsuring high-cost illnesses was replicated by means of a European call option contract. The option�s relevant variables and parameters were adapted to an insurance market context. The premium estimated by the Black-Scholes method fell within the range of premiums estimated by the actuarial method.
