In the Black-Scholes option pricing formula,N(d₁)is the probability that a standardized,normally distributed random variable is: A)less than or equal to N(d₂). B)less than one. C)equal to one. D)equal to d₁. E)less than or equal to d₁.

Question

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In the Black-Scholes option pricing formula, $N(\cdot)$ represents the cumulative distribution function (CDF) of a standard normal distribution. Therefore, $N(d₁)$ represents the probability that a standardized, normally distributed random variable is less than or equal to $d₁$.

In the Black-Scholes Option Pricing Formula,N(d1)is the Probability That a Standardized,normally

In the Black-Scholes Option Pricing Formula,N(d₁)is the Probability That a Standardized,normally