Black-scholes model assume that you have been given the, Financial Management

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Black-scholes model assume that you have been given the

Black-Scholes Model Assume that you have been given the following information on Purcell Industries: Current stock price = $15 Strike price of option = $14 Time to maturity of option = 6 months Risk-free rate = 8% Variance of stock return = 0.11 d1 = 0.582008 N(d1) = 0.719719 d2 = 0.347487 N(d2) = 0.635887 According to the Black-Scholes option pricing model, what is the option's value? Round your answer to the nearest cent. $

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