Ima Greedy,the CFO of Financial Saving Techniques has been granted options on 200,000 shares.The equity is currently trading at £22 a share and the options are at the money.The volatility of the equity has been about .20 on an annual basis over the last several years.The option mature in 3 years and the risk free rate is 4%. Calculate N(d₂). A).5130 B).5578 C).6085 D).7085 E).7142

Question

Quizplus · Accepted Answer

The correct answer is A because N(d2) = 0.5130.

Ima Greedy,the CFO of Financial Saving Techniques Has Been Granted