Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Which of the following is NOT consistent with the assumptions in the Black-Scholes-Merton model? Group of answer choices The stock price at a future time

Which of the following is NOT consistent with the assumptions in the Black-Scholes-Merton model?

Group of answer choices

The stock price at a future time is lognormally distributed.

The returns on the stock in two non-overlapping periods are independent.

The return on the stock in a very short period of time is normally distributed.

The stock price at a future time is normally distributed.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access with AI-Powered Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Advanced Accounting

Authors: Joe Hoyle, Thomas Schaefer, Timothy Doupnik

10th edition

0-07-794127-6, 978-0-07-79412, 978-0077431808

Students also viewed these Finance questions