Let $E ^ { * } ( .)$ Denote Risk-Neutral Expectations in the Black-Scholes Setting

question 7

Multiple Choice

Let $E ^ { * } ( .)$ denote risk-neutral expectations in the Black-Scholes setting.Then,the Black-Scholes formula may calculated by taking the following expectation:

• A) \(e ^ { - r T } E ^ { * } \left[ S _ { T } - K \right] N \left( d _ { 2 } \right)\)
• B) \(e ^ { - r T } E ^ { * } \left[ S _ { F } - K \right] N \left( d _ { 1 } \right)\)
• C) \(e ^ { - \gamma T } E ^ { * } \left[ \max \left( 0 , S _ { T } \right) \right] - K\)
• )
• D) \(e ^ { - r T } E ^ { \prime } \left[ \max \left( 0 , S _ { T } - K \right) \right]\)
• )

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