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Basic Question 6 of 12

In the BSM model, N(-x) = ______.

A. -N(x)
B. 1 - N(x)
C. N(1-X)

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Edward Liu

Edward Liu

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.