a. In Black Scholes option pricing model explain what it means if N(d1 ) is 0.45 in terms of the movements in the stock and call option price.
b. What is N(d1 ) referred to (what is the name) and what does it show?
c. How many call options can you write on one share of stock if N(d1 ) is 0.5 in order to have a fully neutral hedged position?