Which of the following characteristics of the Black-Scholes-Merton model is not correct?
A)it is a discrete time model
B)it is the limit of the binomial model
C)it is a continuous time model
D)it gives the price of a European option
E)none of the above

Question

Quizplus · Accepted Answer

The Black-Scholes-Merton model is a continuous time model, not a discrete time model.

Which of the Following Characteristics of the Black-Scholes-Merton Model Is