According to Black Scholes model, selling and buying of stock have

The correct answer is: B. transaction costs.

The Black-Scholes model is a mathematical model that calculates the price of a European call option. It is based on the following assumptions:

• The stock price follows a geometric Brownian motion.
• The interest rate is constant.
• The volatility of the stock price is constant.
• There are no transaction costs.
• There are no dividends.

The Black-Scholes model assumes that there are no transaction costs. This means that the price of a stock is the same whether you buy it or sell it. In reality, there are always transaction costs associated