Which of the following is not used in the Black-Scholes option pricing formula?

All of the following capital budgeting models incorporate the time value of money except:

a. The discounted payback method. b. The modified internal rate of return (MIRR) method. c. The internal rate of return (IRR) method. d. The payback method. e. The profitability index (PI) method.

When Ellen completed her life insurance application, she answered "No" to the question, "Have you ever had hepatitis?" She had hepatitis two years ago. If Ellen dies shortly after the policy is issued, the insurer may be able to deny the claim because of the doctrine of:

(a) concealment (b) insurable interest (c) warranty (d) misrepresentation