Identify which of these statements regarding option pricing models is CORRECT. One-The binomial option pricing model assumes that the price of the option will change constantly because the market price of the underlying security also changes constantly. Two-The Black-Scholes option valuation model is designed to determine the price of an American call option. Three-The Black-Scholes option valuation model assumes that the price of the option will change in discrete increments on the basis of movements (up or down) in the price of the underlying stock. Four-The binomial model assumes the call option being valued has an exercise price of $100. Question 16 options: 

a) Two, Three, and Four 

b) Four only 

c) One, Two, and Three 

d) One and Four

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