Which of the Following Statements Is False

question 42

Multiple Choice

Which of the following statements is false?

• A) N(d) is the cumulative normal distribution - that is, the probability that a normally distributed variable is greater than d.
• B) Of the five required inputs in the Black-Scholes formula, four are directly observable.
• C) The Black-Scholes formula is derived assuming that the call is a European option.
• D) The Black-Scholes Option Pricing Model can be derived from the Binomial Option Pricing Model by making the length of each period, and the movement of the stock price per period, shrink to zero and letting the number of periods grow infinitely large.

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Definitions:

Corporate Accountability

The responsibility of companies to be answerable for their actions, ensuring ethical conduct, compliance with regulations, and positive impact on society.

Sustainable Tourism

The practice of recreational traveling in a way that maximizes the social and economic benefits to the local community and minimizes the negative impact on cultural heritage and the environment.

Cultural Heritage

Refers to the legacy of physical artifacts and intangible attributes of a group or society that are inherited from past generations, preserved in the present, and bestowed for the benefit of future generations.

Recreational Traveling

Travelling undertaken for pleasure and enjoyment, as opposed to business or practical reasons, often involving exploring new places and experiences.