Question: 3. Using the Black-Scholes formulation and notation we've used in class, compute the following. a. What is N'(x), given that N(.) is a normal CDF

3. Using the Black-Scholes formulation and notation we've used in class,

3. Using the Black-Scholes formulation and notation we've used in class, compute the following. a. What is N'(x), given that N(.) is a normal CDF at x. b. Show that SN'(d1) KeN'(d2), where S is the stock price at time t and 2 2 2 ad2 c. Calculate and 2 as d. Show that when c = SN (d1)-Ke-r(T-t)N(d2) where c is the price of a call option on a non-dividend paying stock

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