Probability Of Profit, Options Strategy, Python Programming, Black Scholes Model.
underlying asset. By the way, both r and σ are constants within the Black-Scholes model, which are also strong assumptions of the model. Ok, but where does our interest in the CDF of d2 come from? Or, to put it better, what does the CDF of d2 mean within the Black-Scholes model? In short, the CDF