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The Black-Sholes option pricing model makes which of the following assumptions? A. Future prices for the underlying asset are log-normally distributed B. Volatility expands in

The Black-Sholes option pricing model makes which of the following assumptions?

A. Future prices for the underlying asset are log-normally distributed

B. Volatility expands in accordance with the square root of time

C. The underlying assets dividend yield does not exceed the risk free rate

D. Answers A and B only

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