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:

Labor

Represents the human effort, both physical and mental, used in the production of goods and services.

Rent

The payment made for the use of a property, such as land, a building, or an apartment, typically on a monthly basis.

Variable Costs

Costs that change in proportion to the level of goods or services that a business produces.

Labor Costs

The total expenses incurred by employing labor, including wages, salaries, and benefits.