Which of the Following Statements Is FALSE

question 33

Multiple Choice

Which of the following statements is FALSE?

• A)If you take the option price quoted in the market as an input and solve for the volatility,you will have an estimate of a stock's volatility known as the implied volatility.
• B)The Black-Scholes formula can be used to price American or European call options on non-dividend-paying stocks.
• C)We need to know the expected return on the stock to calculate the option price in the Black-Scholes Option Pricing Model.
• D)We can use the Black-Scholes formula to compute the price of a European put option on a non-dividend-paying stock by using the put-call parity formula.

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Definitions:

Korotkoff Sounds

Sounds heard through a stethoscope during the measurement of blood pressure with a sphygmomanometer, used to determine systolic and diastolic pressures.

Stethoscope

A medical instrument used for listening to the internal sounds of the body, such as heartbeats and lung sounds.

Posterior Abdominal Wall

The area at the back of the abdominal cavity, bounded by the vertebral column, pelvic girdle, and diaphragm, supporting and protecting internal organs.

Inferior Vena Cava

A large vein that carries deoxygenated blood from the lower and middle parts of the body to the right atrium of the heart.