In the Black-Scholes Call Option Pricing Model, N(d₁) Is the Probability

question 153

Multiple Choice

In the Black-Scholes call option pricing model, N(d₁) is the probability that:

• A) A standardized, normally distributed random variable is less than or equal to d₁.
• B) A standardized, normally distributed random variable is greater than or equal to d₁.
• C) The call will finish in the money.
• D) The call will finish out of the money.
• E) The call will finish at the money.