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13. Equity as an option Blue Gecko Pharmaceuticals is a marufacturing firm. Bhe Gecko's current value of operations, including debt and equity, is estimated to be $20 malion. Blue Gecko has $8 million face-value zero coupon debt that is due in three vears. The risk-free mate is 6%, and the volatility of companies similar to Dlue Gecko is 60%. Blue Gecko's performance has not been very good as compared to previous years. Because the compary has debt, it will. repay its loan, but the company has the option of not paying equity holders. The ability to make the decision of whether to pay or not looks very much the an option. Based on your understanding of the Black-Scholes opbon pricing model (OPM), calculate the following values and complete the table. (Note: Use 2.7153 as the approxamate value of e in your calculations, Do not round intermodiate calculations. Round final answers to two decimal praces.) Plue Gecko's management is implementing a risk manapement strategy to reduce its velat lity. Comalefe the following toble, assuming that the goal ar to reduce the company's volatility to 3014. (Note: Do not round intermediate calculations. Hound find answers to two dopimal placesi) Complete the following sentence, assuming that blive Godk's ask munagenent strategy is successful, value ditestock will