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NEW QUESTION: 1
The Black-Scholes model assumes near perfect markets for both the options and the underlying stock.
Among other conditions, the model assumes the following EXCEPT:
A. The short-term risk-free rate is known and is constant through time
B. The stock price does not follow a random walk with a long normal distribution
C. Trading never stops. It is continuous through time following a geometric Brownian motion
D. There are no commissions or other transaction costs in buying or selling the stock or the option
Answer: B
NEW QUESTION: 2
A. Option A
B. Option D
C. Option B
D. Option C
Answer: C
Explanation:
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Answer:
Explanation:
Explanation
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