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Find which option valuation techniques should not be used

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Problem 1: Many shares and most share options are not traded in an active market. Therefore, it is often difficult to arrive at a fair value of the equity instruments being issued. Which of the following option valuation techniques should not be used as a measure of fair value in the first instance?

a) Black-Scholes model.
b) Binomial model.
c) Monte-Carlo model.
d) Intrinsic value.

Reference no: EM132765793

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