Management Short Question | Gkseries

Question

Which one of the following statements is false ?

A Derivatives are securities whose values are determined by the market price of some other assets
B Derivatives include options, whose values depend on the price of some underlying asset
C A natural hedge is a transaction between two counter parties where both parties’ risks are reduced
D The Black-Scholes Option Pricing Model (OPM) can be used to estimate the value of a put option

Answer & Explanation

Answer: The Black-Scholes Option Pricing Model (OPM) can be used to estimate the value of a put option

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