More on Black and Scholes?

Taranto has pulled a fast one again. Let me explain, ln(px/ps) is the growth rate of the stock price which is the growth rate in price for the option itself. t(krf+dellta/squreroot2) gives the impact of the dividends for the period and the cost of carry.The denominator d.squreroot t gives the mean standard deviation calculated like the Brownian formula for random walk. This is none other than the expected change in Stock price or growth. So d1 is nothing other than change in option price to change in stock price factored to their growth rate. In fact it has to be 1 or above otherwise the hedges will bomb. In my earlier question I have shown why Nd1 also bombs, since it is none other than taking the Normal value of another deviation. This is the biggest problem with this formula. What if it is the first partial derivative of the price function, the put-call parity equation. Please read my second question on this it shows how even Nd bombs. Nd is meaningless unless the rational is visibl