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- This topic has 7 replies, 3 voices, and was last updated 11 years ago by keven.
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- April 6, 2013 at 8:34 pm #121664
Hi, how exactly do you compute In(Pa/Pe).. for example what would be the result in In(2.9/2.6)
April 7, 2013 at 2:21 pm #121732I just use calculator and round up the result at two decimal
April 7, 2013 at 4:27 pm #121844the result will be 0.1092.
firstly you divide 2.9 by 2.6 and press log in your scientific calculator.
Make sure your d1 and d2 should be round up to 2 decimal place and use normal distribution to find N(d1) and N(d2) and round these figures to 4 decimal place.
hope it helps.
April 11, 2013 at 11:12 am #122172Thanks alot Ray and the other person. Lemmie try it out. Please attempt P4 open tuition Chapter 13 example 3 then send me your answers.
April 11, 2013 at 6:52 pm #122194My answer for call option is 52.8 cent as well as put option is 15.3 cent.
April 19, 2013 at 10:35 pm #1229402.9/2.6= 1.1153846
logn 1.1153846= 0.04742how are you getting 0.1092 ?
Exactly which buttons are you pressing ?When you say ” firstly you divide 2.9 by 2.6 and press log ” I assumed you mean we find the log of 1.1154
April 22, 2013 at 4:02 pm #123275when you get 1.1153846, press ln and you will get 0.1092
remember BSOP model for d1 is ln(Pa/Pe …….
April 24, 2013 at 9:56 am #123395@brainstorm22 said:
Thanks alot Ray and accaforall. Lemmie try it out. Please attempt P4 open tuition Chapter 13 example 3 then send me your answers. - AuthorPosts
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