The Black-Scholes Option Pricing Formula

question 1

Multiple Choice

The Black-Scholes option pricing formula

• A)is used widely in practice,especially by international banks in trading OTC options.
• B)is not widely used outside of the academic world.
• C)works well enough,but is not used in the real world because no one has the time to flog their calculator for five minutes on the trading floor.
• D)none of the options

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Definitions:

Physiological

Refers to the normal functions of living organisms and their parts.

Safety

The condition of being protected from or unlikely to cause danger, risk, or injury.

Physiological

relating to the normal functioning of living organisms and their parts, as well as the physical and chemical processes involved.

Safety Needs

The second level of Maslow's hierarchy, encompassing security, stability, and freedom from fear.