FIN550 Week 10 Homework

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Solveford1andd2.xlsx

N(d)-prob 5

Current Price 75
Strike Price 70
RFR 0.09
dividend 2
div yield 0.1066666667
time (T) 0.25
STDEV 0.2
Variance 0.04
e 2.71828
Part 1 0.0423262228
Part 2 0.0275
Part 3 0.1
d1 0.6982622276 N(d1) 0.7574933916
d2 0.5982622276 N(d2) 0.725167512

Sheet2

Sheet3