Question: 1 ) Research suggests that option - pricing models that allow for the possibility of _ _ _ _ _ _ _ _ _ _

1) Research suggests that option-pricing models that allow for the possibility of __________ provide more accurate pricing than does the basic Black-Scholes option-pricing model.
1. early exercise
2. changing expected returns of the stock
3. time varying stock price volatility
A)2 and 3 only
B)1 and 3 only
C)1,2, and 3
D)2 only

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