Which of the Following Variables Is NOT Part of the Black-Scholes

question 127

Multiple Choice

Which of the following variables is NOT part of the Black-Scholes option pricing model?

• A) The expected rate of return on the market
• B) The current stock price
• C) The strike price or exercise price
• D) The time remaining before the expiration date

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Definitions:

Syllogism

A form of deductive reasoning that consists of three propositions: a major premise, a minor premise, and a conclusion.

Minor Term

In a categorical syllogism, the term that occurs in the subject of the conclusion.

Syllogism

A form of reasoning in which a conclusion is drawn from two given or assumed propositions (premises); a common logical structure.

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