When applying the Black-Scholes model, you must first estimate the volatility of the underlying asset. What is the effect of errors in this volatility estimate on the option price? The volatility of assets always remains constant over time, so there should be no estimation errof, Errors in the volatility estimate have a no effect on the option pelce. Errors in volatility estimate can have a large effect on the option price. Errors in the volatility estimate have a neeligible effect on the option price, and therefore can bo ignored