Which of the following is an assumption of the Black-Scholes option pricing model? (A) Stock prices are

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Which of the following is an assumption of the Black-Scholes option pricing model?

(A) Stock prices are normally distributed.

(B) Stock price volatility is a constant.

(C) Changes in stock price are lognormally distributed.

(D) All transaction costs are included in stock returns.

(E) The risk-free interest rate is a random variable.

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