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When Blacks model is used to value a European option on the spot price of an asset, which of the following is NOT true? Group
When Blacks model is used to value a European option on the spot price of an asset, which of the following is NOT true? Group of answer choices
The underlying asset can be an investment or a consumption asset.
It is necessary to know the futures or forward price for a contract maturing at the same time as the option.
It is not necessary to know the risk-free rate.
It is not necessary to estimate income on the underlying asset.
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