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Sir, in question 3a of Dec 2010 paper, the requirement suggested an assumption of delta to be N(-d1). Using this or N(d1) produces a different answer.
So, could you please explain the difference between N(-d1) and N(d1)?
And can I use this assumption for valuing call or put options?
Thanks
The difference is that you either look up the value of +d1 or -d1 in the tables, and I explain exactly how to do this in my free lectures – please do not expect me to type out my lectures here 🙂
You are not expected to use this assumption yourself – when it is needed then the question tells you do it (as this question does).
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