In the Black-Scholes-Merton option pricing formula N(d1) denotes

	A.	the area under a normal distribution from zero to d1.
	B.	the area under a normal distribution from d1 to d2.
	C.	the area under a normal distribution beyond d1.
	D.	the area under a normal distribution up to d1.

The volatility of a share is estimated to be 30% per year. What is the standard deviation of the change in the stock price in two weeks?

	A.	15%
	B.	5.88%
	C.	4.16%
	D.	1.15%

The risk-free rate is 4% and the expected return on a stock is 8%. A derivative on the stock can be valued by

	A.	assuming that the expected growth rate for the stock price is 4% and discounting the expected payoff of the derivative at 8%.
	B.	assuming that the expected growth rate for the stock price is 8% and discounting the expected payoff of the derivative at 4%.
	C.	assuming that the expected growth rate for the stock price is 4% and discounting the expected payoff of the derivative at 4%.
	D.	assuming that the expected growth rate for the stock price is 8% and discounting the expected payoff of the derivative at 8%.

Rho measures

	A.	the rate of change of the portfolio value with the passage of time.
	B.	the rate of change of delta with the asset price.
	C.	the rate of change of the portfolio value with the volatility of the asset price.
	D.	the sensitivity of a portfolio value to interest rate changes.