Examveda
Examveda

According to Black Scholes model, rate which is constant and known is classified as

A. short term return rate

B. long term return rate

C. risk free interest rate

D. risky rate of return

Answer: Option C

Solution(By Examveda Team)

According to Black Scholes model, rate which is constant and known is classified as risk free interest rate. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

This Question Belongs to Commerce >> Financial Management

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