All of the following are assumptions of the Black-Scholes option pricing model except
A) markets are efficient
B) no dividends
C) interest rates are constant
D) investors are generally bullish

Question

Quizplus · Accepted Answer

The Black-Scholes model assumes efficient markets, no dividends, and constant interest rates, but it does not assume that investors are generally bullish.

All of the Following Are Assumptions of the Black-Scholes Option