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    Principles of Corporate Finance Study Set 3
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    Exam 21: Valuing Options
  5. Question
    The Term [N(d<sub>2</sub>)× PV(EX)] in the Black-Scholes Model Represents the
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The Term [N(d2)× PV(EX)] in the Black-Scholes Model Represents the

Question 10

Question 10

Multiple Choice

The term [N(d2) × PV(EX) ] in the Black-Scholes model represents the


A) call option delta.
B) bank loan.
C) put option delta.
D) present value of a bank loan.

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