Simple question, How to find one variable from a equation.

r = 0.01;

S = 1015.20;

K = 285;

T = 0.25;

d1 = (log(S/K) + (r + (v^2)/2) .* T) / (v .* sqrt(T));

d2 = (log(S/K) + (r - (v^2)/2) .* T) / (v .* sqrt(T));

C = normcdf(d1) .* S - normcdf(d2) .* K .* exp(-r .* T);

All other variables are given, except "v". How do I find the "v" ? type in "solve v" doesn't work.

Anyone can help please, thank you!!

[Tiancong Sui]

C = 732.1

Answer 1

[Youssef Khmou]

hi,are all the variables defined, because d1 d2 are missing , if you find d1 or d2 then v can be found by two ways :

 POL=[T -(sqrt(T)*d1-log(S/K)*sqrt(T)) r];
 v =roots(POL)