Which of the following variables is NOT part of the Black-Scholes option pricing model?

Question

Quizplus · Accepted Answer

The Black-Scholes option pricing model does not include the expected rate of return on the market as a variable. The variables included in the model are the current stock price, the strike price or exercise price, the time remaining before the expiration date, the risk-free interest rate, and the volatility of the underlying stock.

Which of the Following Variables Is NOT Part of the Black-Scholes