The Black-Scholes model of call option pricing is only valid for American type call options.

Name: The Black-Scholes model of call option pricing is only valid for American type call options.
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Quizplus · Accepted Answer

The Black-Scholes model is actually designed for European style options, which can only be exercised at expiration. American options can be exercised at any time before expiration and require a more complex pricing model, such as the binomial option pricing model.

The Black-Scholes Model of Call Option Pricing Is Only Valid