1. According to the Black-Scholes asset pricing model, what is the value of a call option, if N(d1) = 0.7, N(d2)=0.6, the underlying stock has a current price (S) of $50, the options strike price (X) is $50, the risk free rate (rrf) is 5%, and the option expires in 1 year (t=1)?

2. Consider a call option with a strike price (X) of $100 that expires in six month (t=0.5). If the current stock price (S) is $100, the underlyings stocks volatility () of the stock is 0.2, and the risk free rate (rrf) is 5% what is N(d1)? The Excel NORMSDIST(z) function will be helpful for this problem.