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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
