Which of the following statements are true about the Black-Scholes-Merton model?

i. The interest rate used in the formula is the continuously compounded rate.

ii. The model can used to price both European and American options.

iii. The model assumes constant volatility of the stock.

a.

i and ii

b.

i and iii

c.

ii and iii

d.

i, ii, and iii are all true

e.

i, ii, and iii are all false