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Consider a 1-year option with exercise price $90 on a stock with annual standard deviation 15%. The T-bill rate is 3% per year. Find N
Consider a 1-year option with exercise price $90 on a stock with annual standard deviation 15%. The T-bill rate is 3% per year. Find N(d1) for stock prices $85, $90, and $95. (Do not round intermediate calculations. Round your answers to 4 decimal places.) |
S | N(d1) |
$85 | |
$90 | |
$95 | |
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