Choice/ NO Explanation needed

The Black-Scholes option pricing theorem claims that which of the following factors influence options prices in a predictable way:

A.The relation between the current price and the strike price

B.How much time there is from now until the expiry date

C.Whether the underlying asset is a corporate share or a raw material

D. Whether the option is presently in the money or not

E.Only (a) and (b)

2.According to the Efficient Markets Hypothesis (EMH), which sorts of stocks are most likely to generate the greatest return in the longer run?

A.Stocks with zero risk

B.Stocks with minimal risk

C.Stocks with significant risk

D.Cannot gauge expected returns based on risk

E.Small-cap stocks