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answer this Question 9 Which of the following is not a variable required to determine an option's value in the Black-Scholes valuation model? a. risk-free

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Question 9 Which of the following is not a variable required to determine an option's value in the Black-Scholes valuation model? a. risk-free rate b. security price volatility c time to expiration d. exercise price e future security price Question of 23 Questions 1 points SA Which of the following statement is true? a The binomial model is a continuous method for valuing options. b. The binomial option pricing model and the Black and Scholes model are similar because they are both discrete models c Black and Scholes model is a two-state option pricing model d. In a binomial option pricing model the initial value of the cat can be determined by working backward through the tree and solving for each of the remaining intermediate option values Question 16 In a bank panic, the source its spread is the a. asymmetric information problem. O b. transactions cost problem. O c. free-rider problem. d. too-big-to-fail problem. Question 3 Which of the following is false? a. Zero-coupon bond will have a duration statistic equal to its maturity b. The duration statistic is measured in a unit of time. c. Modified duration calculates a weighted average of the payment dates associated with an N-perlod bond. d. Bond duration can be interpreted as a measure of the bond's price volatility. Question 1 The central market structure in options contracts a. create consistency with regulations b. cause price reporting to be much complicated c. makes monitoring difficult d. None of the above

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