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Consider a 1-year option with exercise price $55 on a stock with annual standard deviation 25%. The T-bill rate is 2% per year. Find N
Consider a 1-year option with exercise price $55 on a stock with annual standard deviation 25%. The T-bill rate is 2% per year. Find N(d1) for stock prices $50, $55, and $60. (Do not round intermediate calculations. Round your answers to 4 decimal places.)
S | N(d1) |
$50 | |
$55 | |
$60 | |
|
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