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If the Simple Return on a Treasury Bill Is 8

Question 60

Multiple Choice

If the simple return on a Treasury bill is 8.5 percent,the risk-free rate in the Black-Scholes-Merton model is

A) 8.77 percent
B) 8.93 percent
C) 8.55 percent
D) 8.20 percent
E) none of the above

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