In the Black-Scholes Option Pricing Model,what Does the Variable R

question 52

Multiple Choice

In the Black-Scholes option pricing model,what does the variable R represent?

• A)The annually compounded risk-free rate of return
• B)The continuously compounded variance
• C)The continuously compounded annual risk-free rate of return
• D)The annually compounded market rate of return
• E)The continuously compounded market rate of return