The cumulative normal distribution can be approximated (to within about six decimal places) by the modified polynomial
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The cumulative normal distribution can be approximated (to within about six decimal places) by the modified polynomial relation
where
Use this formula to find the value of a call option with parameters \(T=.5, \sigma=.25, r=.08\), \(K=35\), and \(S_{0}=\$ 34\).
Transcribed Image Text:
1-N'(x) (ajk+azk + azk + a4k + ask) for x0 N(x) = 1-N(-x) for x < 0
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