The Black-Scholes-Merton Model Is the Discrete Time Limit to the Binomial

question 14

True/False

The Black-Scholes-Merton model is the discrete time limit to the binomial model.

---

Definitions:

Entrepreneur

An individual who initiates, organizes, and manages a business venture, taking on financial risks in the hope of profit.

Resource Allocator

A role or function responsible for distributing resources, such as time, money, or materials, to various projects or departments.

Monitor

A device used for observing, checking, or keeping a continuous record of a process or quantity.

Effectiveness

The degree to which something is successful in producing a desired result; the ability to achieve specified goals.