Question: a. Which inputs to the BlackScholesMerton model are observable and which need to be estimated? b. Describe some of the difficulties in estimating the unobservable

a. Which inputs to the Black–Scholes–Merton model are observable and which need to be estimated?
b. Describe some of the difficulties in estimating the unobservable input.

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a The stock price riskless rate strike price and maturity date are observable The volatility needs t... View full answer

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