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I need help!
Regarding Black Scholes
In calculating D1, there is an IN function. Is this the inverse function? If yes, how do I input it in my calculator, which is Casio fx-82MS.
Also, there is this e-rt in the main formula. How do I know what “e” actually is?Please help!
Thanks a lot in advance!
Julian
I don’t have this calculator but i goggled it and found that the function ln is beside the log function on the calculator.Right below the x cubed function.
Also the ‘e’ function is the same button as the ln function button on this calculator but you have to press shift before pressing the ‘ e’.The value of ‘e ‘ is 2.71828
You can also go to the opentuition lecture on option pricing where the lecture goes through how to calculate using e.Hope this helps.All the best.To input for example ln(100/95) after calculating 100/95 press the ln button.to get 0.051
Thanks Delfia!
This is so simple. How could I have missed it.
I am sure that the stress is getting to me.
I am wondering if I should give up P4 this time round. I did not touch the book at all before this and I have only 7 days to revise the subject.
This is a really tough and technical subject. I have always managed to get through other subjects with 1 week or less of studies before the exam for other subjects except P2 and most probably P4 this time round.
It sucks.
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