The Black-Scholes Option Pricing Model Can Be Used For

question 69

Multiple Choice

The Black-Scholes option pricing model can be used for:

• A)American options but not European options.
• B)European options but not American options.
• C)call options but not put options.
• D)put options but not call options.
• E)both zero coupon bonds and coupon bonds.

---

Definitions:

Corporate Formalities

The procedures, rules, and policies that a corporation must follow to ensure legality and protect its shareholders.

Annual Meeting

A yearly gathering of the members or shareholders of an organization to discuss its performance, elect leadership, or make decisions on corporate issues.

Directors

Directors are individuals elected to a corporation's board to oversee and guide the organization's policies and direction.

Fiduciary Duty

A legal obligation of trust requiring an individual to act in the best interests of another party, often seen in the context of trustees, guardians, and financial advisors.