Which of the following statements about risk-neutral pricing is most accurate? Select one: While most investors…

Which of the following statements about risk-neutral pricing is
most accurate?
Select one:
While most investors are risk averse, it doesn’t matter if we
assume that investors are risk neutral for the purpose of pricing
derivatives.
The risk-neutral approach was state of the art until
Black-Scholes developed their Nobel-prize-winning formula.
Some investors are risk-averse, some are risk-neutral and some
are risk-seeking. Market prices represent a consensus of various
investors’ opinions. As such, prices reflect an averaging of
various investors’ opinions, giving a state of risk-neutrality.
The risk-neutral approach is valid for the types of derivatives
that attract risk-neutral traders. For derivatives that attract
risk-averse traders, a more-traditional valuation approach must be
adopted.