Instant Solution ? Click "Buy button" to Download the solution File
Which of the following statements about the Black-Scholes-Merton model is NOT TRUE?
It assumes that the stock price follows a log-normal distribution.
It assumes that the stock volatility does not change throughout the option?s life.
The model is consistent with put-call-parity.
It assumes that there are transaction costs.
Paper#9210134 | Written in 27-Jul-2016Price : $22