1. In the Black-Scholes model, the maximum value of N(d2) is

A. 0

B. 1

C. 2

D. Positive infinity

2. A stock trades for $40 with volatility of 30%. The Black-Scholes value of a European call option with an exercise price of $40 expiring in 6 months with riskless rate of 5% is closest to

A. 3.45

B. 3.85

C. 4.95

D. 6.10