The value of N(d) in the Black-Scholes model can take any value between:
A) -1 and +1
B) 0 and +1
C) -1 and 0
D) None of the above

Name: The value of N(d) in the Black-Scholes model can take any value between: A) -1 and +1 B) 0 and +1 C) -1 and 0 D) None of the above
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Question

Quizplus · Accepted Answer

N(d) in the Black-Scholes model is the cumulative distribution function of a standard normal distribution, which can take values between 0 and 1. Therefore, the correct choice is B, which has the range of values for N(d).

The Value of N(d) in the Black-Scholes Model Can Take