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which will produce incorrect outcome for it, you need extra bracket, should read as:
def d1(S,K,T,r,sigma):
return(log(S/K)+(r+((sigma**2)/2))T)/(sigmasqrt(T))
otherwise great write up on blacksholes python model.
The text was updated successfully, but these errors were encountered:
Think you need to tweak d1 part of your formula:
currently it reads as,
define two functions, d1 and d2 in Black-Scholes model
def d1(S,K,T,r,sigma):
return(log(S/K)+(r+sigma**2/2.)T)/sigmasqrt(T)
which will produce incorrect outcome for it, you need extra bracket, should read as:
def d1(S,K,T,r,sigma):
return(log(S/K)+(r+((sigma**2)/2))T)/(sigmasqrt(T))
otherwise great write up on blacksholes python model.
The text was updated successfully, but these errors were encountered: