The following information is given about options on the stock of a certain company: S = 23, X = 20, r =0.09, T = 0.5 and variance = 0.15. No dividends. The BSM model predicts a price of $4.73 for the call. Which of the following statements is FALSE: The BSM model does not always matches the prices observed in the market. If the actual price observed in the market is 3.72 then the implied volatility exceeds 40% The BSM model assumes that volatility does not change throughout the option's life. The BSM model assumes that the underlying instrument movement is log-normally distributed.c