4. (Black-Scholes approximation o) Note that to first order N (d) = +d;2 Use this to derive...
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4. (Black-Scholes approximation o) Note that to first order N
(d) = +d;2 Use this to derive the value of a call option when the stock price is at the present value of the strike price; that is, S = Ke-7 Specifically, show that C 450 T Also show that A+ 20 Use these approximations to estimate the value of the call option of Example 132
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