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Answer the following show the work: Which of the following is an assumptions of the Black-Scholes-Merton (BSM) option-pricing model? A. the risk free rate is

Answer the following show the work:

Which of the following is an assumptions of the Black-Scholes-Merton (BSM) option-pricing model?

A.
the risk free rate is positively correlated with the underlying stock price.

B.
Transaction costs are zero.

C.
Options valued are American style.

D.
The distribution of the underlying stock price is normal.

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	A.	the risk free rate is positively correlated with the underlying stock price.
	B.	Transaction costs are zero.
	C.	Options valued are American style.
	D.	The distribution of the underlying stock price is normal.