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Consider a 1-year option with exercise price $50, on a stock with annual standard deviation 20%. The T-bill rate is 3% per year. Find N
Consider a 1-year option with exercise price $50, on a stock with annual standard deviation 20%. The T-bill rate is 3% per year. |
Find N(d1) for stock prices $45, $50, and $55. (Do not round intermediate calculations. Round your answers to 4 decimal places.) |
S | N(d1) |
$45 | |
$50 | |
$55 |
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