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:

Present Value

The present worth of a future sum or series of cash flows when calculated using a given return rate.

Intangible Asset

An asset that lacks physical substance but is identifiable and provides future economic benefits.

Purchase Price

The amount paid to acquire an asset, including all costs directly attributable to bringing the asset to its intended use.

U.S.GAAP

The Generally Accepted Accounting Principles in the United States, a standard framework of guidelines for financial accounting.