To compute d1 and d2, first convert the time to maturity into years. Then substitute the given parameters into the formula for d1: d1=σTln(S0/X)+(r+σ2/2)T.
Conditions: The parameters are S0=60, X=65, r=11%, σ=45%, and maturity is 4 months.; Time T must be expressed in years, so T=4/12.; Values of d1 and d2 must be rounded to the nearest hundredth before table lookup.
To compute d1 and d2, first convert the time to maturity into years. Then substitute the given parameters into the formula for d1: d1=σTln(S0/X)+(r+σ2/2)T.
Conditions: The parameters are S0=60, X=65, r=11%, σ=45%, and maturity is 4 months.; Time T must be expressed in years, so T=4/12.; Values of d1 and d2 must be rounded to the nearest hundredth before table lookup.