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    Derivatives and Risk Management Study Set 2
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    Exam 8: Principles of Pricing Forwards,futures and Options on Futures
  5. Question
    The Risk-Free Rate Is Missing from D<sub>1</sub> in the Black
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The Risk-Free Rate Is Missing from D1 in the Black

Question 4

Question 4

True/False

The risk-free rate is missing from d1 in the Black model because it is effectively zero.

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