Do you think the BlackScholesMerton model assumptions of no dividends paid on the stock and constant interest

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Do you think the Black–Scholes–Merton model assumptions of no dividends paid on the stock and constant interest rates are reasonable assumptions? If not, why do you think they are imposed?

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An Introduction to Derivative Securities Financial Markets and Risk Management

ISBN: 978-0393913071

1st edition

Authors: Robert A. Jarrow, Arkadev Chatterjee

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Question Posted: Dec 02, 2015 03:52 AM

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Do you think the BlackScholesMerton model assumptions of no dividends paid on the stock and constant interest

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They are not reasonable assumptions for a completely general model and ...View the full answer

An Introduction to Derivative Securities Financial Markets and Risk Management

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