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Which of the Following Inputs in the Black-Scholes Option Pricing

question 25

Multiple Choice

Which of the following inputs in the Black-Scholes option pricing model is not observed?


Definitions:

Inferior Good

A type of good whose demand decreases as the consumer's income increases, opposite to normal goods.

Complementary Good

A product or service that enhances the use or value of another product or service when used together.

Substitute

A good whose demand increases when the price of another good increases. For example, two brands of cola soft drinks are substitutes.

Complement

A good or service that is used together with another good or service, increasing its demand.

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