According to the Black and Scholes Option Pricing Model,which of the Following

question 55

Multiple Choice

According to the Black and Scholes option pricing model,which of the following will lead to an increase in the value of a call option?

• A) the price of the underlying asset decreases
• B) the risk free rate increases
• C) the time to expiration decreases
• D) none of the above

---

Definitions:

RankBrain

A component of Google's core algorithm that uses machine learning to determine the most relevant search results for queries.

Search Engine

A software system designed to carry out web searches, which means to search the World Wide Web in a systematic way for particular information specified in a textual web search query.

Machine Learning

A subset of artificial intelligence (AI) focusing on algorithms and statistical models that enable computers to perform tasks without explicit instructions by relying on patterns and inference.

Intelligent Systems

Intelligent systems refer to advanced computing systems that can learn, adapt, and perform tasks autonomously, often involving artificial intelligence technologies.