black-scholes-merton

Hi everyone! I have a question related to the BSM model. When we calculate N(d1) and N(d2), we’re using cumulative normal table(Z-table). but in this example it states that d1 = 0.1783 -> N(d1) = 0.5708 and d2 = 0.03688 -> N(d2) = 0.5147. Can someone explain why the results are different from...

The Black-Scholes option pricing formula has d1=ln(S/K)+.... Yet, the Stulz reading and in the notes, has "BSM risk-neutral d2 is: d2=ln (S/K...) (p.8 of the notes). Should be not d1 and I understand replacing the risk-free for the mean drift. Trying to understand why we move from d1 to d2 by...

N(d1) is the option's delta and N(d2) is the probability that a call option will be exercised; that is, N(d2) is the probability that S(T) will be greater than K. David's XLS is here: https://trtl.bz/2E8qsmw

David gives a brief tour of a Black Scholes option pricing model. He highlights three of the questions that we get about this famous model. 1. How are dividends exactly treated? 2. Can we interperet N(d1) and N(d2)? 3. Is there any way to get an intuition about how this Black Scholes works short...