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Options Pricing Models There Are Numerous Options Pricing Models. Identify the Two Models

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Options pricing models
There are numerous options pricing models. Identify the two models discussed in the text and identify and describe what inputs (at a minimum) go into these models.


Definitions:

Canalized

A term referring to the limitation of the expression of genetic variability due to genetic or environmental influences, resulting in a trait that is shaped to follow a predictable pattern regardless of variations.

Genetic-Environment Correlations

The interaction between an individual's genetic makeup and their surrounding environment, influencing traits and behaviors.

Passive Correlation

A concept in behavioral genetics where an individual's traits result indirectly from the environment provided by their biological parents.

Active Correlation

A concept in genetics suggesting that an individual’s genes encourage them to seek out environments that complement their inherited traits.

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