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Black-Scholes Model Assume that you have been given the following information on Purcell Industries'...

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Accounting

Black-Scholes Model Assume that you have been given the following information on Purcell Industries' call options: Current stock price = $16 Time to maturity of option = 6 months Variance of stock return = 0.16 d = 1.01696 d2 = 0.73412 Strike price of option = $13 Risk-free rate = 8% N(d) = 0.84541 N(d) = 0.76856 According to the Black-Scholes option pricing model, what is the option's value? Do not round intermediate calculations. Round your answer to the nearest cent. Use only the values provided in the problem statement for your calculations.
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Assume that you have been given the following information on Purcell Industries' call options: Current stock price =$16 Time to maturity of option =6 months Variance of stock return =0.16 d1=1.01696 d2=0.73412 Strike price of option =$13 Risk-free rate =8% N(d1)=0.84541N(d2)=0.76856 According to the Black-Scholes option pricing model, what is the option's value? Do not round intermediate calculations. Round your answer to the nearest cent. Use only the values provided in the problem statement for your calculations

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