The only variable in the Black-Scholes option pricing model that cannot be directly observed is the: a.

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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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Fundamentals Of Investments Valuation And Management

ISBN: 9781266824012

10th Edition

Authors: Bradford Jordan, Thomas Miller, Steve Dolvin

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Question Posted: Dec 31, 2023 10:51 AM

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The only variable in the Black-Scholes option pricing model that cannot be directly observed is the: a.

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The answer is a Stock price volatility Heres a breakdown of the variables in the BlackSchol...View the full answer

Fundamentals Of Investments Valuation And Management

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