Given the following information,what is the value of d₂ as it is used in the Black-Scholes Option Pricing Model?
Share price €42
Time to expiration .25
Risk-free rate .055
Standard deviation .50
D₁ .375161

Question

Quizplus · Accepted Answer

In the Black-Scholes model, d2 is calculated as d1 minus the product of the standard deviation and the square root of time to expiration. Here, d2 = 0.375161 - (0.50 * sqrt(0.25)) = 0.375161 - 0.25 = 0.125161.

Given the Following Information,what Is the Value of D2 as It

Given the Following Information,what Is the Value of D₂ as It