Which of the Following Statements Is True

question 38

Multiple Choice

Which of the following statements is true?

• A)The Black Scholes model is the simplest to use and best used for complex situations.
• B)The Binomial model does not handle options with dividend payments prior to expiration
• Date.
• C)The Black Scholes adequately handles the valuation of an American put.
• D)The Binomal model is better for complex situations and is the simplest tool to use.
• E)The Black Scholes model is simpler to use, but for complex situations, the binomial model
• Is the necessary tool.