Which of the Following Is Not an Input to the Black

question 13

Multiple Choice

Which of the following is not an input to the Black and Scholes model?

• A)earnings per share
• B)stock price
• C)risk-free rate
• D)volatility

---

Definitions:

Periodic Inventory System

An inventory system in which the inventory count and the cost of goods sold calculation are performed at set intervals, typically at the end of an accounting period.

Periodic Inventory System

An inventory accounting system where updates are made on a periodic basis, rather than continuously, often used for calculating cost of goods sold at the end of an accounting period.

Sales Returns & Allowances

Reductions in sales revenue for products returned by customers or allowances given for damaged goods.

Merchandise Inventory

Goods that a company holds for the purpose of selling to customers in the ordinary course of business.