Consider a 1-year option with exercise price 125 on a stock


Consider a 1-year option with exercise price $125 on a stock with annual standard deviation 10%. The T-bill rate is 3% per year. Find N(d1) for stock prices $120, $125, and $130. (Do not round intermediate calculations. Round your answers to 4 decimal places.)

S N(d1)

$120

$125

$130

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Financial Management: Consider a 1-year option with exercise price 125 on a stock
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