The Black-Scholes Option Pricing Model Employs Which Five Parameters

question 57

Multiple Choice

The Black-Scholes option pricing model employs which five parameters?

• A)Stock price, exercise price, risk-free rate, beta, and time to maturity
• B)Stock price, risk-free rate, beta, time to maturity, and variance
• C)Stock price, risk-free rate, probability of bankruptcy, variance, and exercise price
• D)Stock price, exercise price, risk-free rate, variance, and time to maturity

---

Definitions:

Stimuli

External events or occurrences that evoke responses or reactions.

Unconscious Evaluations

Assessments or judgments made without conscious awareness, often influencing preferences, decisions, and behaviors based on implicit biases.

Mere Exposure Effect

The tendency for people to come to like things simply because they see or encounter them repeatedly.

Ingroup Members

People who belong to the same group or category as we do.