The Probability of a Regular Put Option Closing In-The-Money Is

question 1

Multiple Choice

The probability of a regular put option closing in-the-money is, with our usual notation: choose one)

• A) Nd₁)
• B) Nd₂)
• C) N−d₁)
• D) N−d₂)

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Definitions:

Tax Revenue

Tax revenue represents the income that a government receives from taxing individuals and businesses within its jurisdiction.

Equilibrium Quantity

The quantity of goods or services that is supplied and demanded at the equilibrium price, where supply equals demand in a market.

Price

Price is the amount of money expected, required, or given in payment for something.

Tax

A compulsory financial charge imposed by a government on individuals or entities to fund government spending and public expenditures.