All the Inputs in the Black-Scholes Option Pricing Model Are

question 52

Multiple Choice

All the inputs in the Black-Scholes Option Pricing Model are directly observable except

• A)the price of the underlying security.
• B)the risk free rate of interest.
• C)the time to expiration.
• D)the variance of returns of the underlying asset return.
• E)none of the above.

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Definitions:

Halo Effect

A cognitive bias where one's overall impression of a person influences how we feel and think about their character.

Attracted

The state or condition of being drawn to or interested in something or someone, often in a romantic or sexual manner.

Proximity

The physical closeness or nearness of objects, individuals, or concepts, often influencing relationships, interactions, and perceptions.

Physical Attraction

The degree of appeal one individual feels physically towards another, influenced by physical features, symmetry, and other traits.