CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

The BSM model can be described as having two components: a stock component and a bond component. The BSM model put value is ______.
A. the stock component + the bond component
B. the stock component - the bond component
C. the bond component - the stock component
Explanation: For put options, the stock component is SN(-d1) and the bond component is e-rTXN(-d2). p = e-rTXN(-d2) - SN(-d1).

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