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Assume that you have been given the following information on Purcell Corporation's call options: Current stock price = $28 Strike price of option = $25

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Assume that you have been given the following information on Purcell Corporation's call options: Current stock price = $28 Strike price of option = $25 Time to maturity of option = 6 months Risk-free rate = 4% Variance of stock return = 0.16 Nd1) = 0.8675 N(dz) = 0.6432 According to the Black-Scholes option pricing model, what is the option's value? a. $7.52 b.$7.85 c. $8.85 d. $8.53 e. $9.25

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