Black-Scholes Interpretation of d1 and d2

Hello,

Could someone please provide me with a clear, simple, and intuitive interpretation of d1 and d2 in the Black-Scholes model?

This model is widely taught as part of many financial curricula, yet the explanations I’ve come across always seem to define the formulas, but gloss over the precise meaning of them. So, what exactly are d1 and d2?

Any help is appreciated.

Read John Hull’s book on derivatives.

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