dear sir,
at the december 2010 paper question (3),marengo.to calculate delta we use the formula given in the exam.T is the time until option expires in years.in this question..the t is not given but the answer gave 1/6 as the time...sir,can u tell me how did he get 1/6?thanks!
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marengo co december 2010
12y ago#1The fifth line of the question says that they are concerned about share price falling in the next 2 months.
2 months = 2/12 years (or 1/6) :-)
oh!!now i see it!!i guess i read the question too fast..thanks sir!
12y ago#3You are welcome :-)
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