Transposing Excel Formula

[Steveal]

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

 

[Alan]

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

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

B3 = EXP(NORMSINV(Prob)*((B4/100)*SQRT(B5/365)))*B2 ???

 

[Steveal]

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 ???