Which of the Following Is NOT True

question 1

Multiple Choice

Which of the following is NOT true?

• A) Black's model can be used to value an American-style option on futures
• B) Black's model can be used to value a European-style option on futures
• C) Black's model can be used to value a European-style option on spot
• D) Black's model is widely used by practitioners

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Definitions:

Paired Two-sample T-test

A statistical test used to compare two population means where you have two samples in which observations in one sample can be paired with observations in the other sample.

Wilcoxon Signed Rank

The Wilcoxon Signed Rank Test is a non-parametric statistical test used to compare two related samples, matched samples, or repeated measurements on a single sample to assess differences in their population mean ranks.

Normally Distributed

Describes a statistical distribution that is symmetric around the mean, showing that data near the mean are more frequent in occurrence.

F-distribution

A probability distribution used in analysis of variance (ANOVA), depicting ratios of variances to assess the significance of group differences.