Which of the Following Statements Is FALSE

question 20

Multiple Choice

Which of the following statements is FALSE?

• A)N(d)is the cumulative normal distribution-that is,the probability that a normally distributed variable is greater than d.
• B)Of the five required inputs in the Black-Scholes formula,four are directly observable.
• C)The Black-Scholes formula is derived assuming that the call is a European option.
• D)The Black-Scholes Option Pricing Model can be derived from the Binomial Option Pricing Model by making the length of each period,and the movement of the stock price per period,shrink to zero and letting the number of periods grow infinitely large.

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Definitions:

Fugue

A psychological state or condition in which a person loses awareness of their identity or other important autobiographical information and may engage in unexpected travel or wanderings.

Phobia

An intense, irrational fear of specific objects, activities, or situations that leads to avoidance behavior.

Genetic Factors

Attributes determined by the individual genes passed from parents to offspring, influencing traits and characteristics.

Biological Theorists

Researchers or scientists who explore the connections between biological processes and behaviors, emphasizing genetics, neurochemistry, and biology's role in influencing human actions and mental states.