The d1 calculated was a negative figure i.e. d1= -0.0552, the answer then changes it to -d1=0.0552. Why was that done? Does it have a different meaning?
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BSOPS- Marengo Co Dec 2010
10y ago#1It is because we are dealing with put options, and the question tells you (the note at the end of requirement (a)) that the delta is N(-d1).
d1 = -0.0552, so -d1 = - - 0.0552 = + 0.0522 (two minus's because a plus)
Thank you.
so if the note was not given we would take it as a negative?
10y ago#3That is correct :-)
Thank you very much!!
10y ago#5You are welcome :-)
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