Which of the Following Statements Is INCORRECT

question 3

Multiple Choice

Which of the following statements is INCORRECT?

• A) An American option's price can be determined by the Black-Scholes-Merton model.
• B) An American option's price can be determined by a multiperiod binomial option pricing model.
• C) An American option's price can be determined by numerically solving the underlying partial differential equation.
• D) An American option's price can be determined by using Monte Carlo simulation techniques.
• E) None of these answers are correct.

---

Definitions:

Immigration

The action of moving to a foreign country to live permanently.

Pre-migration

The period before migration that involves preparation and decision-making processes by potential migrants.

Brain Drain

The migration of skilled professionals from one country to another, often for better career opportunities or living conditions.

Highly Educated Workers

Individuals who have attained a high level of education, typically resulting in specialized skills and knowledge.