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In delta hedging we take n(d1). However if we are doing a delta hedge for put option will the delta be n(-d1)?
Also say if n(d1) was 0.4554, then will
N(-d1) will be 1-0.4554 ?
ThanksIt will be N(-d1) for a put option, but whenever this has been relevant in the exam then the question has specifically told you this.
N(-d1) does not equal 1 – 0.4554
You always look up for d1 in the tables (ignoring the sign) and then either add 0.5 if d1 is positive, or subtract from 0.5 if d1 is negative.
I explain this in the lectures, and it is also written at the bottom of the normal distribution tables.
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