Would like some help on a question I have already solved , something just doesn't seem right
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Question:
Would like some help on a question I have already solved something just doesn't seem right with my values
So we are using the Black Scholes formula here and here are my variables and equations : For Australian Dollar, values are given as follows:
S CADAUD
K CADAUD
r
t year
sigma
dln
d
Nd
Nd
Plugging all values in : C e
Call option price premium for Australian Dollar CAD
assumptions made:
Nd and Nd should be values between and so we use the absolute value here to get a positive value
For finding Nd we assume that we just use d to find that value
for finding Nd we assume that we juse use d to find that value
QUESTION : What is the call option price premium for foreign currency australian dollars given info above?
Related Book For
Fundamentals of Case Management Practice Skills for the Human Services
ISBN: 978-1305094765
5th edition
Authors: Nancy Summers
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