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anastassius [24]
3 years ago
15

1. In the Black-Scholes option pricing model, N(d1) is the probability that a standard normal random variable takes on a value e

xceeding d1.
A. True
B. False
2. In the Black-Scholes option-pricing model, if volatility increases, the value of a call option will increase but the value of the put option will decrease.
A. True
B. False
Business
1 answer:
grin007 [14]3 years ago
7 0
1. Is False 2. Is True
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When the fixed rate is below equillibrum there is surplus of the countrie's currency at the fixed rate. The government will buy this surplus (if not the value will fall) by selling their foreign currency reserves. This is done to maintain the fixed exchange rate.

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