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The Black-Scholes option pricing model (OPM) was developed in 1973. The creation of the Black-Scholes OPM played a significant role in the rapid growth of

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The Black-Scholes option pricing model (OPM) was developed in 1973. The creation of the Black-Scholes OPM played a significant role in the rapid growth of options trading. Under the assumptions used by Fischer Black and Myron Scholes to derive the Black-Scholes model, if the option price is the price found using the Black-Scholes model, arbitrage opportunities will exist

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