1.9527.Section:Valuation and Risk ModelsReference:John Hull, Options, Futures, and Other Derivatives, 9th Edition, Chapter 15, “The Black-Scholes-MertonModel.”Learning Objective:Compute the value of a European option using the Black-Scholes-Merton model on a dividend-paying stock.30 © 2015 Global Association of Risk Professionals. All rights reserved. It is illegal to reproduce this material in any format without prior written approval of GARP, Global Association of Risk Professionals, Inc.2015 Financial Risk Manager (FRM®) Practice Exam

VALUATION AND RISK MODELSREFERENCE

2015 FRM PRACTICE EXAM

1.9527.

Section:

Valuation and Risk Models

Reference:

John Hull, Options, Futures, and Other Derivatives, 9th Edition, Chapter 15, “The Black-Scholes-Merton

Model.”

Learning Objective:

Compute the value of a European option using the Black-Scholes-Merton model on a dividend-

paying stock.

in any format without prior written approval of GARP, Global Association of Risk Professionals, Inc.

2015 Financial Risk Manager (FRM®) Practice Exam