Sir could u pls help me with call option or put option while calculating why do we someting subtract standard deviation from 0.5 and sometime we add to 0.5. Thanks
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calculating N(d1) or N(d2)
11y ago#1The rule is given at bottom of the normal distribution tables in the exam, and I go through it in my free lecture on here.
You will not be asked why we do it (although it is to find the probably of being in excess of something - a bit like we do in value at risk).
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