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Hello, I'm having the most difficult time trying to figure out the BSOPM. />•S=18, X=15, r(f)=.03, var(x)=.04, t=18 months (1.5 years)••Find d(1) first •(LN(18/15)+(.03+.04/2)*1.5) / (.2*1.2247)=1.051•The find d(2)=1.051-.2449=.8058•Look each of these up on a normal probability table (it is ok to round to the closest value on the table):•Nd(1)=.8554; Nd(2)=.7882•C = S N(d1) - X*e^(-rt)*N(d2)•18*.8554-15*e^(-.03*1.5)*.7882=15.3972-11.303=4.0944••Intrinsic Value 18-15=3•So time value is 4.0944-3=1.0944•    C=S*N(d1)-X*e^(-rt)*N(d2)•    C is the market price of the call•    S is the current value of the underlying spot asset•    N(d1) is a complicated probability that most agree is the hedge ratio of a risk free spot/option portfolio.•    X is the exercise price or strike price•    e^(-rt) is a continuous time present value function•    N(d2) is another probabilityMy professor indicated that you can set this up in Excel and everything that i input his not correct. Is there a way to explain this so I can use it in Excel or overall? I can send over my Excel doc and may there is an issue with my formula.I am unable to attach my document that provides further information, is there a way to send this via email?Thank you,Shanna

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