Which One of the Following Inputs for the Black-Scholes Model

question 50

Multiple Choice

Which one of the following inputs for the Black-Scholes model is not directly observable?

• A)time to option maturity
• B)risk-free interest rate
• C)stock price
• D)strike price
• E)stock price volatility

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Definitions:

Sociobiology

The branch of biology that focuses on the evolution of social behavior through natural selection.

Ultimate Cause

The deeper reason for an occurrence based on evolutionary significance and history, explaining why a feature or behavior exists in an organism.

Altruism

A type of cooperative behavior in which an individual appears to behave in a way that benefits another rather than itself.

Magnetic Field

A region around a magnetic material or a moving electric charge within which the force of magnetism acts.