Which of the Following Statements Is Correct

question 4

Multiple Choice

Which of the following statements is correct?

• A)Risk neutral refers to the state of ignoring the risk involved in determining expected rates of return.
• B)Risk neutral pricing uses the cost of capital to discount the future cash flows of the option.
• C)Risk-neutral pricing ignores the probability of state in pricing the option.
• D)b and c

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Definitions:

Internal and External

Refers to elements, factors, or perspectives within and outside of an organization or entity.

Patient's Billing Record

A document or electronic file that contains details of the billing history and charges for medical services provided to a patient.

Ledger

A book or other collection of financial accounts of a particular type, typically used in accounting to record transactions.

Charges

Fees or prices asked for goods or services.