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Using the Black – Scholes model, i ended up with a negative number for n(d2).
When doing the final computation for ‘C’, how should i treat this negative n(d2)?
You cannot end up with a negative number for N(d2). You can end up with a negative d2 and in this case you subtract the number from the tables from 0.5.
I do explain this in my free lectures on option pricing.
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