Which of the Following Characteristics of the Black-Scholes-Merton Model Is

question 17

Multiple Choice

Which of the following characteristics of the Black-Scholes-Merton model is not correct?

• A)it is a discrete time model
• B)it is the limit of the binomial model
• C)it is a continuous time model
• D)it gives the price of a European option
• E)none of the above

---

Definitions:

Competence

The ability or skill to do something successfully or efficiently.

Individual Differences

Refers to the variations among people in their qualities or characteristics, such as abilities, personality traits, and emotional responses.

Middle Childhood

A developmental stage that typically covers the period from ages 6 to 12, marked by significant growth in cognitive, emotional, and social skills.

Obesity

A medical condition where excess body fat accumulates to an extent that may have a negative effect on health.