Which of the Following Is Not True? Choose One)

question 7

Multiple Choice

Which of the following is not true? choose one)

• A) Black's model can be used to value an American-style option on futures.
• B) Black's model can be used to value a European-style option on futures.
• C) Black's model can be used to value a European-style option on spot.
• D) Black's model is widely used by practitioners.

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Definitions:

Central Tendency

A statistical measure that identifies a central or typical value for a set of data, commonly represented by the mean, median, or mode.

Median

The middle value in a sorted list of numbers, effectively dividing the dataset into two halves.

Regression Toward

A statistical phenomenon that describes how extreme scores on a variable tend to be closer to the average on subsequent measurements.

Emotional Distress

A negative emotional state that may arise from various causes, including stress, anxiety, or traumatic events.