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Which of the following is least accurate regarding the limitations of the Black-Scholes-Merton (BSM) model? The BSM is not useful in A. providing market concensus

Which of the following is least accurate regarding the limitations of the Black-Scholes-Merton (BSM) model? The BSM is not useful in

A.

providing market concensus on expected volatility of the underlying.

B.

pricing options when the short-selling and borrowing at the risk-free rate is constrained.

C.

situations where the volatility of the underlying asset changes over time.

D.

pricing options on bonds and interest rates.

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