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10. The Black-Scholes option pricing model makes which of the following assumptions? A Future prices for the underlying asset are log-normally distributed Volatility expands in
10. The Black-Scholes option pricing model makes which of the following assumptions? A Future prices for the underlying asset are log-normally distributed Volatility expands in accordance with the square root of time B. C. The underlying asset's dividend yield does not exceed the risk free rate D. Answers A and B only
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
