Black Scholes

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November 10, 2011 at 2:42 pm #50414
Boot81
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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
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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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