Black-Scholes Unrealistic Assumption - Quant Trader Interview Question
Difficulty: Medium
Category: Finance
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Topics: black-scholes, options, assumptions, volatility, finance
Problem Description
The Black-Scholes model is a cornerstone of options pricing theory, but it relies on several simplifying assumptions that are not always true in the real world. Which of the following is a key unrealistic assumption of the Black-Scholes model?
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