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Katrina is analyzing an expansion project for a new business and has developed this input for a Black-Scholes model. Stock price = $4,186,300; Exercise price
Katrina is analyzing an expansion project for a new business and has developed this input for a Black-Scholes model. Stock price = $4,186,300; Exercise price = $7,250,000; time period = 4 years; standard deviation = 13.8 percent, and the continuously compounded interest rate = 3.84 percent. What is the value of d2 as it is used in the model? .01338 1.2784 1.2953 1.0293 1.5713
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