Which One of the Following Statements Is Correct Concerning the Black-Scholes

Multiple Choice

Which one of the following statements is correct concerning the Black-Scholes option pricing model?

A) The model assumes a stock pays a constant annual dividend.
B) The model expresses time in terms of years.
C) The model is based on American-style options.
D) The model assumes that the current stock price is equal to the strike price.
E) The model assumes the put is in the money.