Question

Which of the following models can be used to calculate the value of call and put option?

A CAPM Model Correct Answer Incorrect Answer
B Regression Model Correct Answer Incorrect Answer
C Black Scholes Model Correct Answer Incorrect Answer
D Linear Programming Model Correct Answer Incorrect Answer
E Graphical Analysis Correct Answer Incorrect Answer

Solution

The Black Scholes Model (BSM) or Binomial Price Models are used to calculate prices of call and put options.

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