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Black Scholes

This topic has 1 reply, 2 voices, and was last updated 13 years ago by hesrat.

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November 10, 2011 at 2:42 pm #50414
Boot81
Member
- Topics: 11
- Replies: 11
Hi,
How can I get the number of eg N(d1), if d1 is 0,814??
What should I take
0,291 + 0,5 + 0,4(?) * (??-??). The 0,4 is for the third last digit? Is that right?
I only understand for 0,5 + 0,291.
Thank you!
November 11, 2011 at 1:32 am #89532
hesrat
Member
- Topics: 1
- Replies: 6
If the d1 is 0.814, then check the std normal distribution table for 0.81 (go to row 0.8 and then go to column 0.01. Which has value of 0.291.
Therefore, N(di) would be 0.5 + 0.291 = 0.791. If the 0.81 is negative then 0.291 deduct from 0.5 (0.5-,291)
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