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Black-Scholes makes the following assumptions (which are not valid in reality)
- constant volatility (not valid in the long term),
- efficient markets (hence no room for artbitrage),
- constant interest rates,
- log-normal returns,
- the option are imlicitly European and can only be exercized on their expiration date
- no commission or transaction costs,
- and perfect market liquidity.
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What is optional pricing?
prices accessory products that are offered with the main product is called optional pricing for ex.. car accessories _____________________________________________________________________ Uhhhhh... In short, option pricing theory uses advanced modeling techniques, such as the Black-Scholes method, to estimate some form of value for a stock value, equity, etc. Not so sure about the car accessories thing noted above ...lol.
Fred is building a model of a sailboat to scale He is using a scale of 3 cm equals 1 ft If the main mast of the sail boat is 18 ft tall how tall will the main mast be in the model?
That is extremely simple. Think about it next time if 1ft = 3cm then 18ft = 3cm x 18 which then equals 54cm so the main mast on the model sail boat will be 54cm
How is model CO2 dragster similar to real dragster?
A model CO2 dragster involves the same principal forces as a real dragster. A model CO2 has mass, thrust, friction and drag, which are also the main components of a real dragster.
What are the positives and negatives of Rostow's growth model?
The main positive of Rostow’s growth model is that it provides a clear and concise framework for understanding how economies develop over time. The model is easy to understand and can be applied to a wide range of historical and contemporary cases. Additionally, the model offers a number of policy implications that can help policy-makers to promote economic growth. The main negatives of Rostow’s growth model are that it is overly simplistic and does not adequately take into account the complexities of real-world economies. Additionally, the model has been critiqued for its Eurocentric perspective and for its lack of attention to the role of gender in economic development.
Is black a color of the rainbow?
No, because black is not a color. The main colors of the rainbow are red yellow green blue purple. additional colors include orange and pink
What are the main defects of India China relations?
The main defects of India-China relations stem from border disputes.
The two main defects of a primary cell are?
The two main defects of a primary cell include polarization and local action.
What is the main purpose of Informal review?
find defects
What are the two main defects of human eye?
myopia and Hypermetropia
What are the two main group of defects in timber?
CuppingBowSpring
Who is the black model in the jodeci freak n you video?
The main lady in the video's name is Beverly Peele.
What are the main disadvantages of cloning?
There have been problems with cloning. Mainly due to a short life or defects. Cloning does not allow natural selection. Defects will continue and may be amplified.
Can you provide a list of character defects?
Everyone is different, we all have defects of character. I think the main thing is to find out ones defects of character. Take a searching and fearless moral inventory to find out yours. Then work on changing those defects. I think all defects of character leads to resentments. So anything that you do that leads to resentments is a defect of character. Hope that helped
What are the Factors which cause defects in NMR spectrum?
The main factor is the presence of water. If the sample is NOT fully dried of water it will cause a big 'spike' in the spectrum .
Tetralogy of Fallot is a main cause of blue baby syndrome and is four specific defects of what organ?
Heart
What is the main features of the biomedical model?
what are e main components of biomedical model of health
What are the causes of immunoglobulin deficiency syndromes?
Immunoglobulin deficiencies are the result of congenital defects affecting the development and function of B lymphocytes (B-cells). There are two main points in the development of B-cells when defects can occur. First.
