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Basic Question 5 of 12

In the BSM model, if d is less than zero, we can conclude that N(d) is ______.

A. less than zero
B. more than zero
C. less than 0.5

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You have a wonderful website and definitely should take some credit for your members' outstanding grades.
Colin Sampaleanu

Colin Sampaleanu

Learning Outcome Statements

identify assumptions of the Black-Scholes-Merton option valuation model;

interpret the components of the Black-Scholes-Merton model as applied to call options in terms of a leveraged position in the underlying;

describe how the Black-Scholes-Merton model is used to value European options on equities and currencies;

CFA® 2025 Level II Curriculum, Volume 5, Module 32.