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What Is the Primary Limitation of the Black-Scholes-Merton Model?

The primary limitation is its reliance on several simplifying assumptions that do not hold true in the real world. Chief among these is the assumption that volatility is constant over the option's life, and that price movements follow a log-normal distribution (no sudden jumps).

It also assumes continuous trading and no transaction costs.

What Is the Key Assumption of the Black-Scholes Model regarding Volatility?
Why Is the Assumption of No Transaction Costs a Significant Limitation of the Model in Real-World Trading?
Which Options Pricing Model Incorporates Volatility?
What Are the Limitations of the Black-Scholes Model When Attempting to Price American Options?