Motne carlo simulations to price eourpean call

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1. Which of the following statements regarding C corporations is false?

(1) C corporations are generally not subject to corporate income tax.

(2) C corporations are separate entities for tax purposes.

(3) shareholders of a C corporation have limited liability.

(4) shareholders of a C corporation are taxed only when the corporation distributes earnings and profits.

2. We could use Motne Carlo simulations to price a Eourpean call because

1-Black school Merton Model assumes that stock price followed normal distribution

2- BSM assume stock returns followed normal distributio

3-BSM assume exercise price followed normal distributio

4- BSM assume Dividend followed normal distributio

5- non above

Reference no: EM131934899

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