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How is an option intrinsic value determined

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What did you learn about options and their use [their purpose] as derivative instruments? How is an option's intrinsic value determined? Please reflect, then comment critically and discuss.

Please discuss the strengths and weaknesses of the Black-Scholes option pricing model. How can erroneous underlying assumptions of the model cause disastrous results? Please explore, discuss, and comment.

200 words with references

Reference no: EM13889809

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