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Consider a 1-year option with exercise price $125 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 $125 on a stock with annual standard deviation 10%. The T-bill rate is 3% per year. Find N(d1) for stock prices $120, $125, and $130. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
S N(d1)
$120
$125
$130
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