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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.)

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Answer:

At $45, N(d1) = 0.3910

At $50, N(d1) = 0.5987

At $55, N(d1) = 0.7662

Step-by-step explanation:

Please see attachment .

Consider a one-year option with exercise price $50 on a stock with annual standard-example-1
User Whiskey
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