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Q6. Based on the Black-Scholes-Merton option pricing model, which of the following should be used to determine the no-arbitrage option price? (A) Real world probabilities

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Q6. Based on the Black-Scholes-Merton option pricing model, which of the following should be used to determine the no-arbitrage option price? (A) Real world probabilities of stock price (B) Real world probabilities of option price (C) Risk-neutral probabilities of option price (D) None of the above

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