What Are the Major Variables in the Black-Scholes Option Pricing

question 39

Essay

What are the major variables in the Black-Scholes option pricing model and in what direction do they influence the price of call options?

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Definitions:

Permanent

Lasting or intended to last or remain unchanged indefinitely.

Stimuli

External or internal factors that elicit a response from a sensory system or an organism.

Chunk

A stimulus or group of stimuli that are perceived as a discrete piece of information.

Acoustic Code

A memory code based on the sound of the item to be remembered.