Which One of the Following Variables Is NOT Included in the Black-Scholes

question 62

Multiple Choice

Which one of the following variables is NOT included in the Black-Scholes option pricing model?

• A)strike price
• B)time remaining until option expiration
• C)stock volatility as measured by standard deviation
• D)stock price
• E)market rate of return

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Golden Rule

A moral principle that suggests treating others as one would like to be treated themselves.

Daoism

A philosophical and religious tradition rooted in Chinese culture that emphasizes living in harmony with the Dao, which is the fundamental nature of the universe.

Confucianism

East Asian philosophy–religion based on the teachings of the Chinese philosopher Confucius (551–479 BCE). Confucianism is concerned with harmonious social and political relationships, good leadership, and getting along with others through cultivating personal virtue. The central question in Chinese thought generally is the ethical question of what is the good life. For Confucius, the answer was to live in harmony with other human beings, and his philosophy focuses on “the Way” (Dao or Tao) to do that.

Social Order

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