For the Black-Scholes model, the stock's risk should be stated on a basis that is
A) same as the expiration period.
B) annual.
C) weekly.
D) daily.

Name: For the Black-Scholes model, the stock's risk should be stated on a basis that is A) same as the expiration period. B) annual. C) weekly. D) daily.
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Question

Quizplus · Accepted Answer

The Black-Scholes model assumes that the stock's risk is stated on an annual basis. Therefore, the best choice for the basis of the stock's risk is on an annual basis.

For the Black-Scholes Model, the Stock's Risk Should Be Stated