In the Black-Scholes Formula,interest Rates Are Assumed to Be Constant

Multiple Choice

In the Black-Scholes formula,interest rates are assumed to be constant.This is not appropriate for pricing options on bonds primarily because

A) The value of a bond is constant if interest rates are constant.
B) Constant rates would mean no volatility in bond prices and no option value.
C) Payoffs would be discounted at a constant rate.
D) None of the above.