13 534 P 14 4 P What is the interpretation of N(d) in the Black-Scholes-Merton formula [SoN(d)-Ke-TN (d)] as defined in the textbook? The probability that a option will be exercised in a world. : O O O We use the Black-Scholes model to calculate the price of a European put option on a non-dividend paying stock. The stock price is $20 and the present value of the strike price is $19.7. It has been computed that di is 0.2 and d2 is 0.1, Which of the following gives the option price? : O O a. put; real b. put; risk-neutral c. call; real d. call; risk-neutral O a. 20N(-0.1)-19.7N(-0.2) b. -20N(-0.2)+19.7N(-0.1) c. -20N(-0.1)+ 19.7N(-0.2) d. 20N(-0.2)-19.7N(-0.1)