Given That Pressure Has Dimensions of Force ÷ Area; That

question 100

Multiple Choice

Given that pressure has dimensions of force ÷ area; that force has dimensions of mass × acceleration; and that the S.I. unit of pressure is the pascal, what is 1 pascal in terms of S.I. base units?

• A) 1 Pa = 1000 g/cm  s²
• B) 1 Pa = 1 g/m  s²
• C) 1 Pa = 10^-3 kg  m/s²
• D) 1 Pa = 1 kg  m/s²
• E) 1 Pa = 1 kg/m  s²

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Definitions:

Black-Scholes Model

A mathematical model used for pricing European style options, taking into account the stock price, strike price, risk-free rate, time to expiration, and volatility.

Risk-Free Rate

The theoretical return on investment with no risk of financial loss, typically represented by the yield of government securities.

Time To Expiration

This refers to the remaining time until a derivative contract, such as an option or futures contract, becomes invalid or ceases to exist.

Underlying Security

An asset, such as a stock or bond, on which financial derivatives like options and futures are based.