Which of the Following Variables Are Included in the Black-Scholes

question 48

Multiple Choice

Which of the following variables are included in the Black-Scholes call option pricing formula?
I.put premium
II.N(d₁)
III.exercise price
IV.stock price

• A)III and IV only
• B)I, II, and IV only
• C)II, III, and IV only
• D)I, III, and IV only
• E)I, II, III, and IV

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Definitions:

Experience

The knowledge or skill acquired through involvement in or exposure to events.

Compass Sense

The sense of direction an animal requires to travel in a straight line toward a destination.

Map Sense

An innate ability or skill that helps organisms navigate through their environment, often seen in migratory animals.

Cognition

The mental processes involved in gaining and using knowledge; cognition is learning and knowing, including awareness, thinking, processing information, reasoning, and awareness of thoughts, perceptions, and self.