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3 results for “derivatives”

Formulae (3)

(f+g)' = f' + g'

The derivative of a sum is the sum of the derivatives.

\nabla f = \left(\frac{\partial f}{\partial x}, \frac{\partial f}{\partial y}\right)

Vector of partial derivatives pointing in the steepest ascent.

C = S_0\,N(d_1) - K e^{-rT} N(d_2)

Prices a European call option, where d₁ and d₂ depend on the stock price, strike, volatility, rate and time. N(·) is the standard normal CDF.