Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM) Group of answer choices When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution. When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution. Half of the observations in a normal distribution are above the mean and half are below the mean. Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.
Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM) Group of answer choices When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution. When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution. Half of the observations in a normal distribution are above the mean and half are below the mean. Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.
Chapter20: Financing With Derivatives
Section20.A: The Black-scholes Option Pricing Model
Problem 2P
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Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM)
Group of answer choices
When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution .
When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution.
Half of the observations in a normal distribution are above the mean and half are below the mean.
Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.
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