Why Does a Discounted Cash-Flow Approach to Options Valuation Not

Multiple Choice

Why does a discounted cash-flow approach to options valuation not work?

A) It is impossible to estimate expected cash flows.
B) One cannot find the appropriate interest rate for an infinitely small interval.
C) Finding the opportunity cost of capital is impossible as the risk of options changes every time the stock price moves.
D) The strike price of options changes.