The Black-Scholes-Merton Formula Can Be Used in Place of the Black

question 2

True/False

The Black-Scholes-Merton formula can be used in place of the Black formula if you use the futures price for the stock price and a risk-free rate of zero.

---

Definitions:

Endocrine System

A network of glands that produce and release hormones into the bloodstream to control many bodily functions, including growth, metabolism, and mood.

Adrenocorticotropic Hormone

A hormone produced by the pituitary gland that stimulates the adrenal glands to release cortisol, involved in stress response and regulation of some metabolic processes.

Glucocorticoid

A class of steroid hormones that play a significant role in the regulation of metabolism, immune response, and stress within the body.

Cortisol

A steroid hormone produced by the adrenal glands, often referred to as the "stress hormone," involved in the body's stress response.