Simple question about options

[rbigsby]

Post #1: "I'm having some slight difficulty understanding the N(-d1) term in the BSM. Can someone elucidate?"

[Replies go into painstaking detail, show sources and derivations with footnotes, etc.)

Post #2: "BTW, I'm not sure about this 'standard deviation' thing you people believe in. I've also heard that 1+1 doesn't actually equal 2 but depends on the diet and toe nail length of the person calculating it."

I've stopped ascribing malicious intent to those long ago. Nowadays, I just nod and move onto other things as soon as I recognize the dynamic.

interesting take...

 

[rbigsby]

The formula is a little bit complicated as it has many input parameters and uses (log)normal distribution (if that tells you anything).

You have to convert the days to years, ie. 7 / 365 = 0.019178 years
There are other option calculators on the web which work with days instead of years.

For risk-free rate you can simply use 0, or do you know a bank which gives you more if you deposit your money there for a year? If yes, then just enter that % rate.

Here you can see actual volatilities for each strike:
https://www.optionseducation.org/toolsoptionquotes/options-quotes
First choose the company, for example AMD, then choose the option expiration date, then study the Implied Volatility for each strike therein...

These are really absolut beginner's questions, man! As said you need to buy a book at amazon or wherever that explains the options basics to absolute beginners...

Also your other questions about delta etc. are based on the Black-Scholes-Merton equation results. Just see the "option greeks" at wikipedia.
ATM Delta is not always 0.50, it depends on the params of the option.

thanks for the reply.