George Philip
Active Member
While going through Chapter 15 "The Black-Scholes option pricing Formula", I was confused as to how to approximate for taking probabilities of Standard Normal Distribution.
For example
Can we approximate ɸ(0.974) to ɸ(0.97) and take the value as 0.83398 ?
Or do we have to find the value of ɸ(0.974) by interpolating values of ɸ(0.97) and ɸ(0.98)?
Thanks in advance.
For example
Can we approximate ɸ(0.974) to ɸ(0.97) and take the value as 0.83398 ?
Or do we have to find the value of ɸ(0.974) by interpolating values of ɸ(0.97) and ɸ(0.98)?
Thanks in advance.