Q661
According to Black Scholes model, rate which is constant and known is classified as
A.
short term return rate
B.
long term return rate
C.
risk free interest rate
AnswerD.
risky rate of return
Answer: Option C
Solution
Answer: Option C
Solution:
According to Black Scholes model, rate which is constant and known is classified as risk free interest rate. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.