How can i calculate the N(d1) in the black scholes merton equation?

i want to calculate the bsm equation but i dont know how to write the cumulative distribution

Answer 1

[nick]

Hi Georgios Mourozis,

I understand that you are facing an issue in writing cumulative distribution for calculation of black scholes merton equation.

The “normcdf” function can be used to calculate the cdf of standard normal distribution.

d1 = (log(S/K) + ( r + sigma^2)/2 *T ) / (sigma * sqrt(T))

N_d1 = normcdf(d1)

Please refer to the below documentation to know more about the “normcdf” function: https://www.mathworks.com/help/stats/normcdf.html?searchHighlight=normcdf&s_tid=srchtitle_support_results_1_normcdf#d126e779549:~:text=example-,p%20%3D%20normcdf(x),-returns%20the%20cumulative

Hope it helps,

Regards,

Neelanshu