The Black-Scholes model limits the use in pricing options on interest rate instruments as a result of which of the following assumptions?
A) Short-term rates remain constant.
B) Homogeneous investors.
C) Price volatility is constant over the live of the option.
D) a and c only.
E) All of the above.
Correct Answer:
Verified
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A)
Q18: Futures contracts are products created by exchanges.
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