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Consider a 1-year option with exercise price $110 on a stock with annual standard deviation 10%. The T-bill rate is 3% per year. Find N(d1)
Consider a 1-year option with exercise price $110 on a stock with annual standard deviation 10%. The T-bill rate is 3% per year. Find N(d1) for stock prices $105, $110, and $115.
If you could explain the difference between D and N(d1) that would be great. I think that is where im getting stuck
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