How the impact of pricing volatility may be minimized

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Reference no: EM131298876

"Black-Scholes Options Pricing Model" Please respond to the following:

The Black-Scholes Options Pricing Model has been criticized based on underlying assumptions related to stock price fluctuations that may not be relevant in today's marketplace where there is more volatility in stock prices. Assess the validity of this criticism, indicating how the impact of pricing volatility may be minimized. Provide support for your rationale.

Create a convincing argument that the upside financial benefits outweigh the downside risk related to options. Provide support for your argument.

Reference no: EM131298876

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