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NEW QUESTION: 1
Which of the following is NOT an assumption underlying the Black Scholes Merton option valuation formula:
A. Prices of the underlying asset are normally distributed
B. Volatility of the underlying and the risk free interest rate is constant
C. The option is European
D. There are no transaction costs
Answer: A
Explanation:
The BSM formula assumes that prices are lognormally distributed. Therefore Choice 'b' does not represent a valid assumption underlying Black Scholes. All other choices represent valid assumptions.
NEW QUESTION: 2
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A. 사업 관리
B. 정보 보안 관리
C. 데이터베이스 관리자
D. 개인 정보 보호 관리자
Answer: A
NEW QUESTION: 3
The ability of commercial banks to create credit would be reduced if:
A. the required cash ratio was raised
B. their stock of cash assets increased
C. interest rates were lowered
D. the central bank bought bonds from the banks
Answer: A
NEW QUESTION: 4
HOTSPOT
You define a class by using the following code:
To answer, complete each statement according to the information presented in the code.
Answer:
Explanation:
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