c = 6 and d = 7
Chat with our AI personalities
Suppose X1 = N1/D1 and X2 = N2/D2 are two rational expressions, where the numerators N1 and N2 and denominators D1 and D2 are simpler expressions. Then X1 * X2 = (N1*N2)/(D1*D2) and X1 / X2 = (N1*D2)/(D1*N2).
123
1/2 d1 d2
they are also multiplied. When multiplying fractions: (N1/D1) x (N2/D2). The new product is (N1 x N2) / (D1 x D2).
d1 is ln(SpotPrice/StrikePrice)+((RiskFreeRate + (0.5*(sigma^2)))*TimeToMaturity) d2 is SpotPrice-sigma*TimeToMaturity^0.5 These equations are taken from the spreadsheet found in the related link