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

question 18

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:

Original Cost

The purchase price of an asset or service, including installation fees, transportation charges, and any other expenses necessary to make the asset operational.

Depreciation Expense

This refers to the allocation of the cost of a tangible asset over its useful life, representing how much of the asset's value has been used up during an accounting period.

Adjustment Columns

Refers to columns in a worksheet or financial statement used to record adjustments to certain accounts before preparing the final financial statements.