#### Transposing Excel Formula

```I have the following formula to calculate the probability of an option
trading below price B3

Prob = =NORMSDIST((LN(B3/B2))/((B4/100)*SQRT(B5/365)))

B3 = Target Price
B2 = Stock Price
B4 = Implied Volatility
B5 = Days to Expiration

I want to transpose the formula to solve for B3, assuming a value for
Prob.

Here's what I got, but it doesn't give the expected answer - did I
make a mistake in these unfamiliar functions?:

B3= EXP(NORMSINV(Prob))*((B4/100)*SQRT(B5/365))*B2
```
 0
2/7/2011 10:14:24 AM
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```On Feb 7, 10:14=A0am, Steveal <steve_alm...@yahoo.com> wrote:
> I have the following formula to calculate the probability of an option
> trading below price B3
>
> Prob =3D =3DNORMSDIST((LN(B3/B2))/((B4/100)*SQRT(B5/365)))
>
> B3 =3D Target Price
> B2 =3D Stock Price
> B4 =3D Implied Volatility
> B5 =3D Days to Expiration
>
> I want to transpose the formula to solve for B3, assuming a value for
> Prob.
>
> Here's what I got, but it doesn't give the expected answer - did I
> make a mistake in these unfamiliar functions?:
>
> B3=3D EXP(NORMSINV(Prob))*((B4/100)*SQRT(B5/365))*B2

Looking at your original formula shouldn't the transposed version be

B3 =3D EXP(NORMSINV(Prob)*((B4/100)*SQRT(B5/365)))*B2 ???
```
 0
2/7/2011 2:39:36 PM
```Alan,

YES!

Thanks,

Steve

>
Looking at your original formula shouldn't the transposed version be

B3 = EXP(NORMSINV(Prob)*((B4/100)*SQRT(B5/365)))*B2 ???
```
 0
2/7/2011 8:48:36 PM

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