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Commerce · Q671

Financial Management

Graduate and Post Graduate · Commerce · question 671

Q671

According to Black Scholes model, selling and buying of stock have

A.
discount rate
B.
transaction costs
Answer
C.
no transaction costs
D.
no discounts

Answer: Option B

Solution

Answer: Option B
Solution:
According to Black Scholes model, selling and buying of stock have transaction costs. Transaction costs are expenses incurred when buying or selling a good or service.