Question: Why does a discounted cash-flow approach to options valuation not work? A. Finding the opportunity cost of capital is impossible as the risk of options

Why does a discounted cash-flow approach to options valuation not work?

A. Finding the opportunity cost of capital is impossible as the risk of options changes every time the stock price moves.

B. One cannot find the appropriate interest rate for an infinitely small interval.

C. The strike price of options changes.

D. It is impossible to estimate expected cash flows.

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