The above statement creates a notion that market quality of a stock cannot be influenced by the payoffs of the relative stock options since they are replicated in a continuous time. Therefore, the statement means that the payoff that will be derived from options has absolutely no effect on the all market aspect of its underlying stock. For instance, if you want to value stock ‘A’, whether the payoffs of its relative option is negative or positive, its value will not be affected. The above notion by Black and Scholes (1973) has been an invaluable talking point for many researcher (Buraschi & Jiltsov 2006; Ansi and Ouda 2009). The statement is concerned with the dynamic interactions between the stock and the options market. For many academic discussions that have been conducted in regard to these interactions dynamics, there seem to be divergent result (Ansi and Ouda 2009). While some of the studies will agree with the notion created by Black and Scholes (1973) that portray stock options as redundant securities, since their payoffs are replicated, others insists that that tat notion is untrue. For this assignment, we are going to determine whether stocks are indeed replica or not. Hence, this begs the question: Are stock options redundant?