LCM of two numbers

Cumulative Distribution Two Calculator

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✖Cumulative Distribution 1 here represents the standard normal distribution function of stock price.ⓘ Cumulative Distribution 1 [D₁]			+10% -10%
✖Volatile Underlying Stock is a stock with a price that fluctuates wildly hits new highs and lows or moves erratically.ⓘ Volatile Underlying Stock [v_us]			+10% -10%
✖Time to Expiration of Stock occurs when the options contract becomes void and no longer carries any value.ⓘ Time to Expiration of Stock [t_s]			+10% -10%

✖Cumulative Distribution 2 refers to the standard normal distribution function of a stock price.ⓘ Cumulative Distribution Two [D₂]

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Cumulative Distribution Two Solution

STEP 0: Pre-Calculation Summary

Formula Used

Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock)
D₂ = D₁-v_us*sqrt(t_s)
This formula uses 1 Functions, 4 Variables

Functions Used

sqrt - A square root function is a function that takes a non-negative number as an input and returns the square root of the given input number., sqrt(Number)

Variables Used

Cumulative Distribution 2 - Cumulative Distribution 2 refers to the standard normal distribution function of a stock price.
Cumulative Distribution 1 - Cumulative Distribution 1 here represents the standard normal distribution function of stock price.
Volatile Underlying Stock - Volatile Underlying Stock is a stock with a price that fluctuates wildly hits new highs and lows or moves erratically.
Time to Expiration of Stock - Time to Expiration of Stock occurs when the options contract becomes void and no longer carries any value.

STEP 1: Convert Input(s) to Base Unit

Cumulative Distribution 1: 350 --> No Conversion Required
Volatile Underlying Stock: 195 --> No Conversion Required
Time to Expiration of Stock: 2.25 --> No Conversion Required

STEP 2: Evaluate Formula

Substituting Input Values in Formula

D₂ = D₁-v_us*sqrt(t_s) --> 350-195*sqrt(2.25)

Evaluating ... ...

D₂ = 57.5

STEP 3: Convert Result to Output's Unit

57.5 --> No Conversion Required

FINAL ANSWER

57.5 <-- Cumulative Distribution 2

(Calculation completed in 00.004 seconds)

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BMS College of Engineering (BMSCE), Bangalore

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< Forex Management Calculators

Black-Scholes-Merton Option Pricing Model for Call Option

LaTeX Go Theoretical Price of Call Option = Current Stock Price*Normal Distribution*(Cumulative Distribution 1)-(Option Strike Price*exp(-Risk Free Rate*Time to Expiration of Stock))*Normal Distribution*(Cumulative Distribution 2)

Cumulative Distribution One

LaTeX Go Cumulative Distribution 1 = (ln(Current Stock Price/Option Strike Price)+(Risk Free Rate+Volatile Underlying Stock^2/2)*Time to Expiration of Stock)/(Volatile Underlying Stock*sqrt(Time to Expiration of Stock))

Black-Scholes-Merton Option Pricing Model for Put Option

LaTeX Go Theoretical Price of Put Option = Option Strike Price*exp(-Risk Free Rate*Time to Expiration of Stock)*(-Cumulative Distribution 2)-Current Stock Price*(-Cumulative Distribution 1)

Cumulative Distribution Two

LaTeX Go Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock)

Cumulative Distribution Two Formula

LaTeX Go

Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock)
D₂ = D₁-v_us*sqrt(t_s)

Cumulative Distribution Two

Cumulative distribution model makes several assumptions, including constant volatility, no dividends paid during the option's life, and that the option can only be exercised at expiration (European option). It provides a theoretical framework for pricing options, and the calculated option prices are often used as a benchmark for comparing with market prices. Keep in mind that the model has limitations and may not perfectly reflect real-world market conditions.

How to Calculate Cumulative Distribution Two?

Cumulative Distribution Two calculator uses Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock) to calculate the Cumulative Distribution 2, The Cumulative Distribution Two formula is defined as a formula which essentially standardizes the inputs to reflect the relative size of the stock price, risk-free rate, volatility, and time to expiration in order to calculate the option's pricing parameters of both cumulative distributions. Cumulative Distribution 2 is denoted by D₂ symbol.

How to calculate Cumulative Distribution Two using this online calculator? To use this online calculator for Cumulative Distribution Two, enter Cumulative Distribution 1 (D₁), Volatile Underlying Stock (v_us) & Time to Expiration of Stock (t_s) and hit the calculate button. Here is how the Cumulative Distribution Two calculation can be explained with given input values -> 57.5 = 350-195*sqrt(2.25).

FAQ

What is Cumulative Distribution Two?

The Cumulative Distribution Two formula is defined as a formula which essentially standardizes the inputs to reflect the relative size of the stock price, risk-free rate, volatility, and time to expiration in order to calculate the option's pricing parameters of both cumulative distributions and is represented as D₂ = D₁-v_us*sqrt(t_s) or Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock). Cumulative Distribution 1 here represents the standard normal distribution function of stock price, Volatile Underlying Stock is a stock with a price that fluctuates wildly hits new highs and lows or moves erratically & Time to Expiration of Stock occurs when the options contract becomes void and no longer carries any value.

How to calculate Cumulative Distribution Two?

The Cumulative Distribution Two formula is defined as a formula which essentially standardizes the inputs to reflect the relative size of the stock price, risk-free rate, volatility, and time to expiration in order to calculate the option's pricing parameters of both cumulative distributions is calculated using Cumulative Distribution 2 = Cumulative Distribution 1-Volatile Underlying Stock*sqrt(Time to Expiration of Stock). To calculate Cumulative Distribution Two, you need Cumulative Distribution 1 (D₁), Volatile Underlying Stock (v_us) & Time to Expiration of Stock (t_s). With our tool, you need to enter the respective value for Cumulative Distribution 1, Volatile Underlying Stock & Time to Expiration of Stock and hit the calculate button. You can also select the units (if any) for Input(s) and the Output as well.

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