According to the Black-Scholes Option Pricing Model Which of the Following

question 27

Multiple Choice

According to the Black-Scholes option pricing model which of the following has the effect of decreasing the value of a call option?

• A) an increase in the stock price
• B) a higher strike price
• C) an increase in the standard deviation of the underlying asset price returns
• D) an increase in the risk-rate

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Definitions:

Immunizations

Medical procedures that use vaccines to stimulate the immune system's ability to fight infections or diseases.

Language Acquisition Device

A theoretical component of the human brain hypothesized by Noam Chomsky to enable the innate ability of language learning in infants and children.

Chomsky

Refers to Noam Chomsky, an influential American linguist, philosopher, cognitive scientist, and social critic known for his theories on language acquisition and syntax.