The Black and Scholes option pricing model makes an assumption that markets have taxes and transactions costs.

Name: The Black and Scholes option pricing model makes an assumption that markets have taxes and transactions costs.
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The Black and Scholes option pricing model assumes a market with no taxes and no transaction costs. This simplifies the model and allows for easier calculations, but may not accurately represent real-world markets.

The Black and Scholes Option Pricing Model Makes an Assumption