Q673
According to Black Scholes model, call option is well exercised on its
A.
mid buying date
B.
expiry date
AnswerC.
buying date
D.
mid selling date
Answer: Option B
Solution
Answer: Option B
Solution:
According to Black Scholes model, call option is well exercised on its expiry date. Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.