Empirically investigate black scholes option pricing model

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Numerous studies empirically investigate the Black Scholes Option Pricing Model. In relation to these studies, please describe the following:

a) The empirical methodologies used to test the Black Scholes Option Pricing Model.

b) The results of empirical tests of the Black Scholes Option Pricing Model.

c) How the literature reconciles volatility smiles and term structures with the Black Scholes Option Pricing Model.

Reference no: EM131622846

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