To compute the value of a put using the Black-Scholes option pricing model, you:

To compute the value of a put using the Black-Scholes option pricing model, you:    A.  first have to apply the put-call parity relationship. B.  first have to compute the value of the put as if it is a call. C.  compute the value of an equivalent call and then subtract that value from one. D.  compute the value of an equivalent call and then subtract that value from the market price of the stock. E.  compute the value of an equivalent call and then multiply that value by e-RT. Refer to section 25.2

22.

Which one of the following statements is correct?    A.  The price of an American put is equal to the stock price minus the exercise price. B.  The value of a European call is greater than the value of a comparable American call. C.  The value of a put is equal to one minus the value of an equivalent call. D.  The value of a put minus the value of a comparable call is equal to the value of the stock minus the exercise price. E.  The value of an American put will equal or exceed the value of a comparable European put. Refer to section 25.2

23.	The Black-Scholes option pricing model can be used for:    A.  American options but not European options. B.  European options but not American options. C.  call options but not put options. D.  put options but not call options. E.  both zero coupon bonds and coupon bonds. Refer to section 25.2

24.	Which of the following variables are included in the Black-Scholes call option pricing formula? I. put premium II. N(d1) III. exercise price IV. stock price    A.  III and IV only B.  I, II, and IV only C.  II, III, and IV only D.  I, III, and IV only E.  I, II, III, and IV Refer to section 25.2

25.

Which one of the following statements related to options is correct?    A.  American stock options can be exercised but not resold. B.  A European call is either equal to or less valuable than a comparable American call. C.  European puts can be resold but can never be exercised. D.  European options can be exercised on any dividend payment date. E.  American options are valued using the Black-Scholes option pricing model. Refer to section 25.2