n NISM Certifications
XXI NISM Series XXI-A
Medium

The 'Black-Scholes Model' is used to value:

Practice question from NISM XXI A for PMS - Mock Test 5 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Bonds

  2. B

    Stocks

  3. Options

    Correct answer

  4. D

    Futures

Why this is the answer

The Black-Scholes model is a mathematical model used to estimate the fair value of European options.

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