Function OPT_PROB_HIT/text/scalc/01/func_opt_prob_hit.xhpOPT_PROB_HIT function
OPT_PROB_HIT
Returns the probability that an asset hits a predetermined barrier price, assuming that the stock price can be modeled as a process S that follows the stochastic differential equation, as follows.OPT_PROB_HIT equationµ is the asset’s percentage drift, vol is the percentage volatility of the stock, and dW is a random sample drawn from a normal distribution with a zero mean. W is a Wiener process or Brownian motion.OPT_PROB_HIT(Spot; Volatility; Drift; Maturity; LowerBarrier; UpperBarrier)Drift is the annual stock price percentage drift rate (µ in the above formula). The value is expressed as a decimal (for example, enter 15% as 0.15).Strike is the strike price of the option and should be non-negative.=OPT_PROB_HIT(30;0.2;0.3;1;0;40) returns the value 0.6119.=OPT_PROB_HIT(70;0.3;0.1;0.5;60;0) returns the value 0.4239.