How to use BA II Plus to calculate Black-Scholes?

CFA General
#1

Hi All, Could anyone show me how to use BA II Plus to calculate Black-scholes? or if i got the value for d1, how to calculate the N(d1), which function or button show I use? I have tried to search from the web and the user guide, but still couldn’t get the answer. Thanks. Cheers, Victor

#2

You would need to use one of the approximation formulas. There are some good approx. like 1 - phi(x)*P(x) where phi(x) is normal pdf and P(x) is a polynomial. The higher the degree of P(x) the better the approximtion.

#3

Use the Black-Scholes key.

#4

Thx all. NakedPuts, which one is the “Black-scholes” key on the calculator? Thanks.

#5

It only works for call options. It’s the “CPT” button on the top right.

#6

Just program some BS and press CPT. Works for both put and call BS calculations.

#7

victorlung Wrote: ------------------------------------------------------- > Thx all. > > NakedPuts, which one is the “Black-scholes” key on > the calculator? > > Thanks. Isn’t this the one next to NOROM key?

#8

Lol, you guys are cruel. Hey, Victor, when pressing the CPL key, make sure you press it twice, in quick succession. If it does not work, it means you didn’t press it quickly enough.