Which of the Following Is Not a Variable Required to Determine

question 34

Multiple Choice

Which of the following is not a variable required to determine an option's value in the Black-Scholes valuation model?

• A) future security price
• B) exercise price
• C) time to expiration
• D) risk-free rate
• E) security price volatility

---

Definitions:

Payment

The transfer of money or goods from one party to another as compensation for receiving goods, services, or to fulfill a legal obligation.

Acceptance of Goods

The act of receiving a product or service and agreeing that it meets the contractual specifications and requirements.

Environmentally Preferable Purchasing (EPP) Program

A procurement policy that emphasizes buying products and services with a reduced environmental impact.

Federal Procurement

Federal procurement involves the process by which government departments or agencies purchase goods, services, and works from the private sector.