The Black-Scholes Option Pricing Model

question 50

Multiple Choice

The Black-Scholes option pricing model:

• A) Must express time as the number of years until an option expires
• B) Assumes the call and put options have different exercise prices
• C) Is based on European style, not American style, options
• D) Assumes the call and put options have different expiration dates
• E) Uses a stock's variance as the measure of volatility

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