According to Black Scholes model, rate which is constant and known is classified as

A short term return rate
B long term return rate
C risk free interest rate
D risky rate of return

Correct Answer: risk free interest rate

According to Black Scholes model, rate which is constant and known is classified as risk free interest rate. The risk-free interest rate is the rate of return of a hypothetical investment with no risk of financial loss, over a given period of time.

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