CFA Practice Question

There are 227 practice questions for this study session.

CFA Practice Question

The Black model suggests calculating the present value of the difference between the futures price and the exercise price to arrive at the value of a futures option. The futures price and exercise price are adjusted by ______.

A. N(d) functions
B. the continuously compounded risk-free rate
C. volatility
Correct Answer: A

User Contributed Comments 0

You need to log in first to add your comment.