Question: a) Show that the approximate formula 10 connecting the ? and the ? of plain vanilla European options is exact if the underlying asset pays

a) Show that the approximate formula 10 connecting the ? and

a) Show that the approximate formula 10 connecting the ? and the ? of plain vanilla European options is exact if the underlying asset pays no dividends and if the risk-free interest rates are zero. In other words: 1 + 2-9 0 (b) If q0 and r 0, show that N'(d2)

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