When Black's model used to value a European option on the spot price of an asset, which of the following is NOT true?
A. It is necessary to know the futures or forward price for a contract maturing at the same time as the option
B. It is not necessary to estimate income on the underlying asset
C. It is not necessary to know the risk-free rate
D. The underlying asset can be an investment or a consumption asset
C
The futures price embodies all the relevant information needed about the spot price and the income on the asset. However, it is still necessary to know the risk-free rate.
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Answer the following statement true (T) or false (F)
A dance school in the Bronx teaches professional hip-hop and salsa. It is experiencing an increase in student admissions, which is leading to substantial improvement in profits. The school is going through the ________ phase of its life cycle
A) decline B) stagnancy C) growth D) introduction E) maturity
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You may provide incentive for a prompt reply to your persuasive sales message by
A) offering a gift to the first 100 people who respond by the due date. B) using cautious, hesitant language to avoid discouraging your reader. C) giving information about new products added to your website. D) repeatedly sending the same message for a week.