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Understanding N(d1) and N(d2) using MonteCarlo Simulations: Black Scholes for dummies - Promo 1

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Uploaded by on Mar 10, 2011

This video explains Black Scholes' risk adjusted probabilities, N(d1) and N(d2), using the payment of exercise price and contingent receipt of stock components of the closed form European call option formula. Concepts are illustrated via a Monte Carlo simulation model that will help build up the intuition behind the closed formed formula as well as create an understanding of the difference between the two probabilities.
For complete video please visit http://financetrainingcourse.com

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