Which of the following quantities associated with equity option pricing is model dependent?
A)Stock price.
B)Implied volatility.
C)Interest rate.
D)Dividend rate.

Name: Which of the following quantities associated with equity option pricing is model dependent? A)Stock price. B)Implied volatility. C)Interest rate. D)Dividend rate.
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Question

Quizplus · Accepted Answer

Implied volatility is defined with respect to a specific model (often Black-Scholes).

Which of the Following Quantities Associated with Equity Option Pricing