1. in the answer sheet appendix iii , is it okay to calculate as
d1 = 0.35
d2 = -0.23
N(d1) = 0.6368
N(d2) = 0.409
i have used 2 digits while the answer sheet have used 3 digits and as a result, N(d1) and N(d2) answer differs.
In the real exam, is it okay to use 2 digits for d1 and d2 answers( like how i have written in the above) ?
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Hi John, if possible will you help me to answer this question... ?
7y ago#2Yes it is OK to use 2 digits - I explain this (and why the examiner sometimes uses more) in my lectures.
You will have to say what help you need - I am certainly not going to type out an answer for you.
(Assuming of course that you actually have watched my lectures on both share options and on real options!!)
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