Which one of the following inputs is included in the Black-Scholes-Merton model but not in the Black-Scholes model?
A)stock price volatility
B)time to option maturity
C)risk-free interest rate
D)underlying stock price
E)dividend yield

Question

Quizplus · Accepted Answer

The Black-Scholes-Merton model includes dividend yield as an input, which is not included in the original Black-Scholes model.

Which One of the Following Inputs Is Included in the Black-Scholes-Merton