Question 7 (1 point) What is NOT an assumption in the Black-Scholes model Prices do not jump No transaction costs Volatility is constant Stock price can only have finite number of values at expiration Question 8 (1 point) What is NOT true about N(D2) in the BS model ? N(d2) ... O can be computed using NORMSDIST(d1) function in Excel O equals option delta O is between zero and one O is probability that a call expires in-the-money