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In the Black-Scholes Option Pricing Model,investors Are Assumed to Be

Question 14

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In the Black-Scholes option pricing model,investors are assumed to be not only rational but also able to do Ito calculus.This model,with its unrealistic assumptions,


A) is valuable only as an abstract curiosity.
B) cannot be robust.
C) still leads to accurate predictions.
D) is rejected by most economists.

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