Which of the Following Is Not Used in the Black-Scholes

question 56

Multiple Choice

Which of the following is not used in the Black-Scholes option pricing formula?

• A) stock price
• B) dividend yield
• C) strike price
• D) risk-free rate

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Definitions:

Factory Overhead

The sum of all indirect costs of manufacturing, including expenses related to the operation of factories such as utilities and rent, articulated with different phrasing.

Predetermined Rate

A rate established in advance to apply overhead costs to products or job orders, usually based on estimated costs and activity levels.

Standard Cost Tables

Reference charts that list the predetermined costs for various products or services, facilitating cost control and budgeting.

Institute of Management Accountants

A worldwide association of accountants and financial professionals in business, focused on promoting management accounting.