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According to Black Scholes model, call option is well exercised on its

A. mid buying date

B. expiry date

C. buying date

D. mid selling date

Answer: Option B

Solution(By Examveda Team)

According to Black Scholes model, call option is well exercised on its expiry date. Black-Scholes is a pricing model used to determine the fair price or theoretical value for a call or a put option based on six variables such as volatility, type of option, underlying stock price, time, strike price, and risk-free rate.

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