• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
Free ACCA & CIMA online courses from OpenTuition

Free ACCA & CIMA online courses from OpenTuition

Free Notes, Lectures, Tests and Forums for ACCA and CIMA exams

  • ACCA
  • CIMA
  • FIA
  • OBU
  • Books
  • Forums
  • Ask AI
  • Search
  • Register
  • Login
  • ACCA Forums
  • Ask ACCA Tutor
  • FIA Forums
  • CIMA Forums
  • OBU Forums
  • Qualified Members forum
  • Buy/Sell Books
  • All Forums
  • Latest Topics

20% off ACCA & CIMA Books

OpenTuition recommends the new interactive BPP books for June 2026 exams.
Get your discount code >>

Black-Scholes model – value option

Forums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black-Scholes model – value option

  • This topic has 1 reply, 2 voices, and was last updated 4 years ago by John Moffat.
Viewing 2 posts - 1 through 2 (of 2 total)
  • Author
    Posts
  • April 28, 2021 at 8:11 pm #619109
    Angelika0612
    Member
    • Topics: 1
    • Replies: 0
    • ☆

    Hi. I have a question regarding value call option and N(d) e.g

    d1= 0.6
    d2=0.4

    N(d1)= 0.5 + 0.2257 = 0.7257
    N(d2) = 0.5 – 0.1554 = 0.3446.

    Are my calculations of N(d2) correct? Or it should be also “+” (0.5+0.1554?)
    Maybe I do not understand it correctly or there is a mistake in the book..

    Thank you for the help.
    Angelika

    April 29, 2021 at 7:44 am #619146
    John Moffat
    Keymaster
    • Topics: 57
    • Replies: 54835
    • ☆☆☆☆☆

    In both cases d is positive i.e. greater than zero, and so in both cases you should add 0.5.

    We only subtract from 0.5 if d is negative (i.e. less than zero).

    Have you watched my free lectures on using the Black Scholes model?

  • Author
    Posts
Viewing 2 posts - 1 through 2 (of 2 total)
  • You must be logged in to reply to this topic.
Log In

Primary Sidebar

Kaplan ACCA Free Trial

Donate
If you have benefited from our materials, please donate

ACCA News:

ACCA My Exam Performance for non-variant

Applied Skills exams is available NOW

ACCA Options:  “Read the Mind of the Marker” articles

Subscribe to ACCA’s Student Accountant Direct

ACCA CBE Exams – Instant Poll

How was your exam, and what was the exam result?

BT CBE exam was.. | MA CBE exam was..
FA CBE exam was.. | LW CBE exam was..

Donate

If you have benefited from OpenTuition please donate.

PQ Magazine

Latest Comments

  • aksemurtaza5 on Accounting for Limited Companies –  The statement of Profit and Loss – ACCA (FA) lectures
  • John Moffat on Activity Based Costing part 3 – Advantages of, and problems with – ACCA Performance Management (PM)
  • dubsforbill on PPE – revaluation upwards – ACCA Financial Reporting (FR)
  • saaranitinchandratre on Activity Based Costing part 3 – Advantages of, and problems with – ACCA Performance Management (PM)
  • adam on IASB Conceptual Framework – Introduction – ACCA Financial Reporting (FR)

Copyright © 2026 · Support · Contact · Advertising · OpenLicense · About · Sitemap · Comments · Log in