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Which of the following statements is INCORRECT about the Black's model? Select one: a.It assumes that the forward price of the underlying asset or the
Which of the following statements is INCORRECT about the Black's model? Select one: a.It assumes that the forward price of the underlying asset or the forward rate has a constant volatility b.It is based on the concept of risk-neutral valuation c.The forward price of the underlying asset or the forward rate is assumed to be lognormally distributed. d.It can be used to price interest rate related options when interest rates are stochastic
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