What is the probability that a european call option on ncc


Probability for a call to be in the money at maturity

The stock of Network Communication Corp. (NCC) is currently traded at $50 on the market. Assume the stock price has a lognormal distribution. The expected return from the stock is 15 percent per annum and its volatility is 25 percent per annum. What is the probability that a European call option on NCC stock with a strike price of $52 and a maturity of 3 months will be in-the-money at the maturity date?

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Financial Management: What is the probability that a european call option on ncc
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