1. 

   Trainee_Act Member

   Calculate the implied volatility for the underlying.
   
   d1 = [log(S0/K) + (r + 0.5σ2)T] / σ√T
   
   In the log component above, why does the mark scheme use 1.1798/1.5 instead of 117.98/150?
   
   Thanks.

    

   Trainee_Act, Apr 6, 2022

   #1
2. 

   Steve Hales ActEd Tutor Staff Member

   No reason. They evaluate to same thing

    

   Steve Hales, Apr 7, 2022

   #2

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