Which One of the Following Inputs Is Included in the Black-Scholes-Merton

question 14

Multiple Choice

Which one of the following inputs is included in the Black-Scholes-Merton model but not in the Black-Scholes model?

• A)stock price volatility
• B)time to option maturity
• C)risk-free interest rate
• D)underlying stock price
• E)dividend yield

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Definitions:

Personal Privilege

A special right, advantage, or immunity granted or available only to a particular person or group.

Community Property State

A Community Property State is one where all property acquired during marriage is considered equally owned by both spouses, except for property received by one spouse through gift or inheritance.

Jointly Owned

Describes property or assets owned together by two or more parties, where each has an undivided interest in the whole.

Estate In Fee Simple

Refers to the most complete ownership of land or property that can be legally held under common law, implying absolute ownership without any limitations or conditions.