Which of the following is not part of the Black Scholes option pricing model?
A) Standard deviation
B) Time to maturity
C) Exercise price
D) Par value of the company's stock
E) Interest rate

Question

Quizplus · Accepted Answer

The par value of the company's stock is not a component of the Black Scholes option pricing model. The model takes into account the stock price, time to maturity, exercise price, standard deviation, and interest rates.

Which of the Following Is Not Part of the Black