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Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM) Group of answer choices   When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution. When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution. Half of the observations in a normal distribution are above the mean and half are below the mean. Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.

Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM) Group of answer choices   When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution. When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution. Half of the observations in a normal distribution are above the mean and half are below the mean. Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Select all that are true with respect to the Black Scholes Option Pricing Model (BSOPM)
Group of answer choices
 
When using BSOPM to value a stock option, the BSOPM assumes that stock prices follow a normal distribution.
When using BSOPM to value a stock option, the BSOPM assumes that stock returns follow a normal distribution.
Half of the observations in a normal distribution are above the mean and half are below the mean.
Fisher Black and Myron Scholes were awarded the Nobel Prize in 1997 for their work in Option Pricing.
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