What are some of the shortcomings of the black scholes


1. What are some of the shortcomings of the Black Scholes Approach?

2. Why does the binomial option pricing formula discount the expected cash flows using the risk-free rate?

3. Discuss some of the practical issues with applying option pricing to capital budgeting problems.

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What are some of the shortcomings of the black scholes
Reference No:- TGS02367398

Expected delivery within 24 Hours