Which of the Following Is not a Variable Required to Determine

question 43

Multiple Choice

Which of the following is not a variable required to determine an option's value in the Black-Scholes valuation model?

• A) Future security price.
• B) Exercise price.
• C) Time to expiration.
• D) Risk-free rate.
• E) Security price volatility.

---

Definitions:

Retail Storage

The space used to store merchandise in retail operations before it is sold to customers.

Inventory Cost

The total cost associated with holding and storing unsold goods, including warehousing, insurance, depreciation, and opportunity costs.

Transportation Cost

Expenses incurred in the process of moving goods from one location to another, including freight charges, fuel costs, and maintenance.

Channel Activity

Actions or operations undertaken by intermediaries in the distribution channel to move products from producers to consumers.