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The Black - Scholes Model typically underestimates option prices when: Question 4 Answer a . The options are of long duration b . The underlying

The Black-Scholes Model typically underestimates option prices when:
Question 4Answer
a.
The options are of long duration
b.
The underlying asset has high volatility
c.
The underlying asset pays dividends
d.
The options can be exercised early

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