Question

Which of the following is not an input of the Black and Scholes model? A. earnings...

Which of the following is not an input of the Black and Scholes model?

A. earnings per share

B. stock price

C. risk free rate

D. volatility

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Answer #1

The answer is

A.Earnings per share

Black and Scholes Model of Valuation uses a number of factors such as stock price, risk free rate and volatility

but not earnings per share

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