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    Exam 24: Options, Caps, Floors, and Collars
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    The Black-Scholes Model Does Not Work Well to Value Bond
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The Black-Scholes Model Does Not Work Well to Value Bond

Question 25

Question 25

True/False

The Black-Scholes model does not work well to value bond options because of violations of the underlying assumption of a constant variance of returns on the underlying asset.

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