The Black Scholes model consider the factors which affects an option price, the factors are __________?
Correct answer: D. all of the above
- A. spot price of asset
- B. exercise price and exercise date of option
- C. price volatility
- D. all of the above
Explanation
Black-Scholes uses the asset’s spot price, exercise price, time to expiration, and price volatility, along with interest rate assumptions. Therefore, all the listed factors are relevant.
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