How do we solve for N(d1) in case area in two tail is given?
Share
Please briefly explain why you feel this question should be reported.
Please briefly explain why you feel this answer should be reported.
Please briefly explain why you feel this user should be reported.
Hey Krishna,
With the given question, i hope you know how to solve with one tail and so, you are just asking when two tail is given. (If you dont, message me i will answer).
One tail is Right OR left.
Two tail is Right AND left. So simply divide it with 2 and you will get one tail. Then solve as you would solve one tail question.
SO for example two tail is given for z 0.25 as 0.8026 then one tail will be 0.8026/2 = 0.4013.
Just in case, cummulative is given then deduct it from 1, and you will get one tail.
Hope your doubt is clear. ALl the best! :))
Hi Mukti. Thanks for the answer, just one more query, in case after division the area will be one tail then for N(d1) we have to deduct the result by 1 and in case of cumulative we don’t have to deduct. Right?