The Black-Scholes Option Pricing Model Is

Multiple Choice

The Black-Scholes option pricing model is:

A) Applicable to both American and European put options given an option period of one year or less.
B) A simplified method of determining the value of a stock given the value of its American style options.
C) Based on European-style call and put options.
D) Used in conjunction with the put-call parity formula to determine the value of a call.
E) The basis for proving that European puts are more valuable than comparable American puts.