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Basic Question 7 of 12

N(-d2) represents the probability that ______ expire(s) in the money.

A. the call option
B. the put option
C. both the call and put option

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I am happy to say that I passed! Your study notes certainly helped prepare me for what was the most difficult exam I had ever taken.
Andrea Schildbach

Andrea Schildbach

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.