Rubinstein (1994) Observed That the Performance of the Black-Scholes Model

Multiple Choice

Rubinstein (1994) observed that the performance of the Black-Scholes model had deteriorated in recent years, and he attributed this to

A) investor fears of another market crash.
B) higher-than-normal dividend payouts.
C) early exercise of American call options.
D) decreases in transaction costs.
E) None of the options are correct.