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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