The only variable in the Black-Scholes option pricing model that cannot be directly observed is the: a.
Question:
The only variable in the Black-Scholes option pricing model that cannot be directly observed is the:
a. Stock price volatility.
b. Time to expiration.
c. Stock price.
d. Risk-free rate.
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The answer is a Stock price volatility Heres a breakdown of the variables in the BlackSchol...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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