- CFA Exams
- CFA Level I Exam
- Study Session 14. Derivatives
- Reading 38. Valuation of Contingent Claims
- Subject 4. Black-Scholes-Merton Option Valuation Model

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**CFA Practice Question**

N(-d

B. the put option

C. both the call and put option

_{2}) represents the probability that ______ expire(s) in the money.A. the call option

B. the put option

C. both the call and put option

Correct Answer: B

On the other hand, N(d

_{2}) = 1 - N(-d_{2}) measures the probability that the call option expires in the money.###
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