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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?


Definitions:

Hypothesis

A proposed explanation for a phenomenon, serving as a starting point for further investigation.

Accuracy

The degree to which a measurement, calculation, or specification conforms to the correct value or a standard.

Politic

Strategies and activities associated with governance, decision-making within groups or organizations, or the exercise of authority and influence.

Aphasia

A condition characterized by the loss of the ability to understand or express speech, caused by brain damage.

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