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

Question 59

Multiple Choice

Given the following information,what is the value of d2 as it is used in the Black-Scholes option pricing model?  Stock price $31.60 Exercise price $50.00 Time to expiration 9 months  Risk-free rate 4.25 percent  Standard deviation 55 percent d10.65829\begin{array} { l l } \text { Stock price } & \$ 31.60 \\\text { Exercise price } & \$ 50.00 \\\text { Time to expiration } & 9 \text { months } \\\text { Risk-free rate } & 4.25 \text { percent } \\\text { Standard deviation } & 55 \text { percent } \\\mathrm { d } _ { 1 } & - \mathbf { 0 . 6 5 8 2 9 }\end{array}


A) -1.1346
B) -0.8657
C) -0.8241
D) -0.7427
E) -0.7238

Correct Answer:

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