Verify that (3.3) coincides with Black-Scholes (Merton) Formula

[thuyha]

Please help me solve this problem

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Problem 1: Verify that (3.3) coincides with (3.4).

. . .\(\displaystyle (3.3):\, e^{-rT}\, E_Q\, \bigg[\, (S_T\, -\, K)_+\, \bigg]\)

. . .\(\displaystyle (3.4):\, S_0\, N\, (d_1)\, -\, K\, e^{-rT}\, N\, (d_2)\)

Note: The expression (3.4) is called the Black-Scholes (Merton) Formula

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Thank you very much.

 

[Deleted member 4993]

Please help me solve this problem

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Problem 1: Verify that (3.3) coincides with (3.4).

. . .\(\displaystyle (3.3):\, e^{-rT}\, E_Q\, \bigg[\, (S_T\, -\, K)_+\, \bigg]\)

. . .\(\displaystyle (3.4):\, S_0\, N\, (d_1)\, -\, K\, e^{-rT}\, N\, (d_2)\)

Note: The expression (3.4) is called the Black-Scholes (Merton) Formula

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Thank you very much.

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[stapel]

Problem 1: Verify that (3.3) coincides with (3.4).

. . .\(\displaystyle (3.3):\, e^{-rT}\, E_Q\, \bigg[\, (S_T\, -\, K)_+\, \bigg]\)

. . .\(\displaystyle (3.4):\, S_0\, N\, (d_1)\, -\, K\, e^{-rT}\, N\, (d_2)\)

Note: The expression (3.4) is called the Black-Scholes (Merton) Formula

Please reply with the definitions of all variables, along with any relationships between them, so we have some chance of figuring out what is going on with these expressions. When you reply, please include a clear listing of your thoughts and efforts so far. Thank you!