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Which of the following statements about the BSM model is INCORRECT? a. The BSM model makes an unrealistic assumption that returns are normally distributed b.

Which of the following statements about the BSM model is INCORRECT?

The BSM model makes an unrealistic assumption that returns are normally distributed

The BSM model is useful because it is a convenient option quoting device and provides closed-form formulas for option greeks.

The BSM model makes an unrealistic assumption that volatility is constant

The BSM model is useful because it accurately prices European options.

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