In the Black-Scholes Model, If an Option Is Not Likely

question 9

Multiple Choice

In the Black-Scholes model, if an option is not likely to be exercised, both N(d₁) and N(d₂) will be close to ________. If the option is definitely likely to be exercised, N(d₁) and N(d₂) will be close to ________.

• A) 1; 0
• B) 0; 1
• C) −1; 1
• D) 1; −1

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Definitions:

Understaffed Groups

Groups or teams that do not have enough members to effectively manage their assigned tasks, leading to strain and inefficiency.

Here And Now

A focus on the present moment, often used in therapeutic contexts to emphasize awareness of current experiences and feelings.

Industrial Tragedy

Catastrophic events or accidents occurring in industrial settings, often due to neglect of safety measures, leading to loss of life or significant harm.

Intervention

An action taken to improve a situation, especially in the context of social, medical, or psychological issues.