ent standard deviat
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Question
1
Transcribed Image Text:Abi company is currently trading at $16. There are call and put options with $15
strike price and 3 month maturity. The company does not pay dividend. The risk free
rate is 2.5 percent. Abi has 40 percent standard deviation. What is d1?
O 0.2921
0.5843
O 0.1945
0.4602
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