The value of N(d), which is used in the Black-Scholes model, can take any value between
A)−1 and +1.
B)0 and +1.
C)−1 and 0.
D)− 0.95 and 0.95.

Name: The value of N(d), which is used in the Black-Scholes model, can take any value between A)−1 and +1. B)0 and +1. C)−1 and 0. D)− 0.95 and 0.95.
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Question

Quizplus · Accepted Answer

N(d) represents the cumulative standard normal distribution function, which ranges from 0 to 1. Therefore, the value of N(d) can only take values between 0 and 1, making (B) the correct answer.

The Value of N(d), Which Is Used in the Black-Scholes