Context: Black Scholes Merton Model for put option valuation
Hi David
Considering that the N(-D1) and N(-D2) values aren't provided in the question wrt FRM PT1 exam and we need to decipher than from the Z table (http://learn.bionicturtle.com/images/2018/forum/082718-t4-815-1-zlookup.jpg ) , I am confused about how to calculate the N(-D1) and N(-D2) values?
Example: D1= 0.86; D2=.0.8022
From the Z table (http://learn.bionicturtle.com/images/2018/forum/082718-t4-815-1-zlookup.jpg), N(D1)= 0.8051(Approx) and N(D2)= 0.7881
Now, -D1= -0.86 and -D2=-0.8022
How can i find the values of N(-D1) and N(-D2) ? as the table above doesn't have the negative 'Z' values.
Note: I have thought of back calculating from the below formula, but not sure if we have any other way.
1. N(d1)= 1- N(-d1)
Thanks for your time!
Hi David
Considering that the N(-D1) and N(-D2) values aren't provided in the question wrt FRM PT1 exam and we need to decipher than from the Z table (http://learn.bionicturtle.com/images/2018/forum/082718-t4-815-1-zlookup.jpg ) , I am confused about how to calculate the N(-D1) and N(-D2) values?
Example: D1= 0.86; D2=.0.8022
From the Z table (http://learn.bionicturtle.com/images/2018/forum/082718-t4-815-1-zlookup.jpg), N(D1)= 0.8051(Approx) and N(D2)= 0.7881
Now, -D1= -0.86 and -D2=-0.8022
How can i find the values of N(-D1) and N(-D2) ? as the table above doesn't have the negative 'Z' values.
Note: I have thought of back calculating from the below formula, but not sure if we have any other way.
1. N(d1)= 1- N(-d1)
Thanks for your time!
Last edited: