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Which of the following statements are true/false 1: The term N(d1) in the Black-Scholes equation captures the probability that an option will be exercised. II:
Which of the following statements are true/false
1: The term N(d1) in the Black-Scholes equation captures the probability that an option will be exercised.
II: he term N(d2) in the Black-Scholes equation captures the probability that an option will be exercised.
A. | I is true, II is false | |
B. | I is false, II is true | |
C. | I and II are both false | |
D. | 1 and II are both true |
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