Black and Scholes Model 1: Finding N (d1) and N (d2)

A demonstration of Black and Scholes model for valuing European Call Options with a non-dividend paying stock as an underlying asset. In this episode, we cover N (d1) and N (d2)

Category:

Education

Tags:

• finance
• investments
• derivative instruments
• options
• call options
• black and scholes
• N (d1)
• N (d2)

[khanpreston1]

what is the difference between europeon call and simple call option?

[csbhatnagar]

@khanpreston1

A European call option can be exercised only on the expiry date while an American option (if that is what you mean by a "simple" call option) can be exercised anytime before expiry.

[cicikiz85]

very clear!! thank you!

[nimashaful]

that was really helpful... a very good lecture... thanks for uploading......

[umessi10]

Great tutorial. Thank you so much

[chikitita159]

Dear sir, could you please be so kind as to explain to me, what to do when the value obtained for D1 is for example, -0.1435. how can i get an exact number for N(d1)?

thank you in advance

[jeremiasosio]

This video has been a great help. Very well explained.

Thanks very much.

[killen]

Thank you very much, for this invaluable fast information, I do really appreciate it!!!