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Thank you David, understod.

Hi David, for Problem 19.10, in your calculation of d1, why don't you include Rf of 12%? I understand the calculation of d1 to be: [LN (S/K)+ {Rf+(Vol^2/2)}*T]/(vol*SQRT(T)) Thank you for your advice.

Hi there, Would you please reply to the post above? Thank you.

Hi David, (I moved my initial post in the archive to here) for 7.10 I assume my calculation below misses the loss at the year 3, while final conclusion is the same at circa $0.413 (numbers in $ mio) Floating rate payment: (10+0.4)*exp^(0.078441*0.5) = 9.61558, where 0.078441 is derived from...

Hi David, I need to understand how p-value is derived. On your study note for tutorial video for the captioned p.12, please explain how we get CDF of 0.9878 for p-value calculation. Similarly, please show calculation for 2-sided p-value in following two slides p.13 (1.34%) and p.14 (4.10%)...