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Ksivusya [100]
3 years ago
9

Consider a one-year option with exercise price $50 on a stock with annual standard deviation 20%. The T-bill rate is 3% per year

. Find N(d1) for stock prices $45, $50, and $55. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Business
1 answer:
Gennadij [26K]3 years ago
3 0

Answer:

At $45, N(d1) = 0.3910

At $50, N(d1) = 0.5987

At $55, N(d1) = 0.7662

Explanation:

Please see attachment .

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