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The Black-Scholes option pricing model assumes which of the following? a. Interest rate increasing as option nears expiration b. Constant volatility of the underlying c.
The Black-Scholes option pricing model assumes which of the following?
a.
Interest rate increasing as option nears expiration
b. Constant volatility of the underlying
c.
Jumps in the underlying price
d.
Possibility of negative underlying price
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