The Black-Scholes-Merton model assumes: choose one)
A) The return from the stock in a short period of time is lognormally distributed
B) The stock price at a future time is lognormally distributed
C) The stock price at a future time is normally distributed
D) None of the above
Correct Answer:
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Q1: When there are dividends: choose one)
A) It
Q2: For equities it is usually assumed that
Q3: The risk-free rate is 5% and the
Q4: A 7-month European put option on the
Q5: In the Black-Scholes-Merton option pricing formula, Nd1)
Q6: A stock price is $100. Volatility is
Q8: The VIX index measures choose one)
A) Implied
Q9: What is the price of the put
Q10: The Black, Scholes and Merton pathbreaking papers
Q11: Volatility can be defined as: choose one)
A)
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