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The Black-Scholes Pricing Model: a. Is related to the binomial pricing model b. Values options by predicting the fair stock price and discounting at the

The Black-Scholes Pricing Model:

a. Is related to the binomial pricing model

b. Values options by predicting the fair stock price and discounting at the risk free rate

c. Can be inaccurate in some cases because it does not consider time

d. Can be used to value call options but not put options

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