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CA final SFM help

CA Final 1881 views 3 replies

can anybody plz explain black scholes model in FOREX.

Replies (3)

u got no option to learn the formulas...u just need to learn how to see the table .....the calculation part is lenghty..u want me to explain to u the calculations/?

ya it wud b of gr8 help if u can explain me  hw to do it on calculator.i know it but i never get the right value while doing on calculator.

Black Scholes formula I think in Black Scholes formula calculation of N(d1) & N(d2) are tough. i can help u in calculation of N(d1) & N(d2) using Cumulative Standard normal distribution table which is attached. for ex N(d1) where d1 = 0.5817 N(0.5817) = See the table for .5 under 8 that is equal to 0.7190 & .17(0.7224-.7190)i.e 0.000578 then u add 0.7190+0.000578= 0.7195


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