The Option Valuation Model of Black and Scholes Allows for Changes

question 24

True/False

The option valuation model of Black and Scholes allows for changes in the standard deviation of the underlying asset over time.

---

Definitions:

Procedural Memory

A type of long-term memory involved in the unconscious memory of skills and how to perform certain tasks.

Skiing

A winter sport involving the movement over snow with the help of skis attached to each foot.

Explicit

Clearly and directly expressed or demonstrated, leaving no room for confusion or ambiguity.

Procedural Memory

The aspect of long-term memory that enables people to perform tasks without conscious awareness of having learned them, such as riding a bike.