Define the black-scholes option pricing formula

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Question: The probability that a European call option on the stock will be exercised is N(d2) (same expression as in Black-Scholes option pricing formula). What is the probability that a European call option on a stock with an exercise price of $40 and a maturity date in six months will be exercised? The current stock price is at $38, the interest rate is at 5%, stock return volatility is at 25%.

Reference no: EM131477366

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