Question: In the Black-Scholes option pricing model, what does the variable R represent? A. The annually compounded risk-free rate of return B. The continuously compounded variance

In the Black-Scholes option pricing model, what does the variable R represent?

A.

The annually compounded risk-free rate of return

B.

The continuously compounded variance

C.

The continuously compounded annual risk-free rate of return

D.

The annually compounded market rate of return

E.

The continuously compounded market rate of return

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