In the Black-Scholes Option Pricing Model, the Symbol "σ" Is

question 70

Multiple Choice

In the Black-Scholes option pricing model, the symbol "σ" is used to represent the standard deviation of the:

• A) option premium on a call with a specified exercise price.
• B) rate of return on the underlying asset.
• C) volatility of the risk-free rate of return.
• D) rate of return on a risk-free asset.
• E) option premium on a put with a specified exercise price.

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