1. (Numerical evaluation of normal distribution) The cumulative normal distribution can be approximated (to within about six...

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1. (Numerical evaluation of normal distribution) The cumulative normal distribution can be approximated (to within about six decimal places) by the modified polynomial relation - N'(x) (ask + ask + ak +ash+ + ash) N(x) = 1- N(-x) for 0 for x < 0 where 1 N'(x) 1 k = 1 + yx y 2316419 a =319381530 - 35653782 ay 1781477937 41821255978 as 1.330274429 Use this formula to find the value of a call option with parameters 7 = 5. = .25, + = 08, K 35, and S = $34

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Investment Science

ISBN: 9780195391060

1st International Edition

Authors: David G. Luenberger

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