Chapter 16, Problem 7PS

Show that Black-Scholes call option hedge ratios increase as the stock price increases. Consider a one-year option with exercise price $\$\text{5}0$ on a stock with annual Standard deviation $\text{2}0\%$ . The T-bill rate is $\text{3}\%$ per year. Find $\text{N}\left({\text{d}}_{\text{l}}\right)$ for stock prices $\left(\text{a}\right)\$\text{45},\left(\text{b}\right)\$\text{5}0,\text{ and }\left(\text{c}\right)\$\text{55}$ . $\left(\text{LO 16}-\text{3}\right)$