The Value of N(d), Which Is Used in the Black-Scholes

question 65

Multiple Choice

The value of N(d) , which is used in the Black-Scholes model, can take any value between

• A)−1 and +1.
• B)0 and +1.
• C)−1 and 0.
• D)− 0.95 and 0.95.

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Definitions:

Cognition

The mental action or process of acquiring knowledge and understanding through thought, experience, and the senses.

Survey Research

A research method involving the collection of data from a predefined group of respondents to gain information and insights on various topics of interest.

Wording

The choice and arrangement of words in speech or writing, which can significantly affect communication effectiveness and interpretation.

Cognitive Dissonance

A psychological phenomenon where there is discomfort or distress from holding two conflicting beliefs or attitudes.