Black-Scholes model – value optionForums › Ask ACCA Tutor Forums › Ask the Tutor ACCA AFM Exams › Black-Scholes model – value optionThis 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)AuthorPosts April 28, 2021 at 8:11 pm #619109 Angelika0612MemberTopics: 1Replies: 0☆Hi. I have a question regarding value call option and N(d) e.gd1= 0.6 d2=0.4N(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 MoffatKeymasterTopics: 57Replies: 54701☆☆☆☆☆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?AuthorPostsViewing 2 posts - 1 through 2 (of 2 total)You must be logged in to reply to this topic.Log In Username: Password: Keep me signed in Log In