Which one of the following variables is NOT included in the Black-Scholes option pricing model?
A)strike price
B)time remaining until option expiration
C)stock volatility as measured by standard deviation
D)stock price
E)market rate of return

Question

Quizplus · Accepted Answer

The Black-Scholes option pricing model does not take into account the market rate of return. It only considers the strike price, time remaining until option expiration, stock volatility as measured by standard deviation, and stock price.

Which One of the Following Variables Is NOT Included in the Black-Scholes