The Black-Scholes formula is notable because it does NOT require us to know the
A)volatility of the share.
B)dividend rate on the share.
C)risk-free rate.
D)expected return on a share.

Question

Quizplus · Accepted Answer

The Black-Scholes formula, used for pricing European call and put options, does not require knowledge of the expected return on a share. It instead focuses on factors like volatility, dividend rates, and the risk-free rate.

The Black-Scholes Formula Is Notable Because It Does NOT Require