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Assume that you have been given the following information on Fiore Industries: Current stock price = $16 Exercise price of option = $16 Time until

Assume that you have been given the following information on Fiore Industries:

Current stock price = $16

Exercise price of option = $16

Time until expiration of option = 6 months

Risk-free rate = 8%

Variance of stock price = 0.12

d₁ = 0.28577

d₂ = 0.04082

N(d₁) = 0.61247

N(d₂) = 0.51628

Using the Black-Scholes option pricing model, what is the value of the option?

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