URGENT please!

List all assumptions which are needed to engage in MC options pricing.

Group of answer choices

(a) Stock returns are normally distributed with some volatility, , which is stationary over time and is the annualized standard deviation of the stocks return.

(b) Stock returns are independent over time, meaning todays return does not depend on yesterdays return and tomorrows return does not depend on todays return, etc (Stock Returns are IID).

(c) The average return on the stock, annually, is the risk-free rate, .

(d) It is not possible to enter any trade with a guaranteed riskless profit (known as arbitrage)- whether this involves buying or selling a call or put on the stock, buying or selling the stock itself, or any combination of buying and sell options on the stock and the stock itself.

All of the above

(a) & (b) only

(a), (b) & (c)