If the value of d1 is 1.25, then the value of N(d1) is equal to:
A) -0.1056
B) 1.25
C) 0.25
D) 0.8944

Name: If the value of d1 is 1.25, then the value of N(d1) is equal to: A) -0.1056 B) 1.25 C) 0.25 D) 0.8944
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Question

Quizplus · Accepted Answer

N(d1) is the cumulative standard normal distribution function evaluated at d1. Using a standard normal distribution table or calculator, we can find that the closest value of N(d1) to 1.25 is 0.8944. Therefore the correct answer is D.

If the Value of D1 Is 1