I created the following function:
nDone<- function (under,strike,ttoe,vol,rf,dy) pnorm(((log(under/strike)+ (rf-dy+(vol^2)/2)*ttoe)/(vol*(ttoe^0.5))))
Then I call the function with the following:
nDone(90,100,3,0.17,0.05,0)
Result
[1] 0.6174643
Ok so far were all good.
Now I create a vector with the same values in an object:
d<- c(90,100,3,0.17,0.05,0)
and I try to call the function using the object.
nDone(d)
And I get the following error.
Error in under/strike : 'strike' is missing
What am I doing wrong and how to fix?
Thanks
RSG