N(h)in the Black and Scholes model involves the use of
A)the number of shares issued
B)the next time that a venture capitalist will invest money
C)the normal distribution cumulative density function
D)the number of times that the venture will have to raise money

Question

Quizplus · Accepted Answer

N(h) in the Black and Scholes model involves the use of the normal distribution cumulative density function to calculate the probability of an option expiring in-the-money. The other choices (A, B, D) are not relevant to the Black and Scholes model.

N(h)in the Black and Scholes Model Involves the Use of