Using the black-scholes option pricing model what would be


Black-Scholes model Assume you have been given the following information on Purcell Industries: Current stock price = $16 Exercise price of option = $10 Time to maturity of option = 6 months Risk-free rate = 8% Variance of stock price = 0.12 d1 = 2.20456 d2 = 1.95961 N(d1) = 0.99 N(d2) = 0.97 Using the Black-Scholes Option Pricing Model, what would be the value of the option? Round your answer to two decimal places.

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Finance Basics: Using the black-scholes option pricing model what would be
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