Assume you have been given the following information on Purcell Industries: P t o $15 0.5 0.12 X I'RF $15 10% 1) Using the Black-Scholes Option Pricing Model, what would be the value of the option? First, we will use formulas from the text to solve for d, and d. Hint: use the NORMSDIST function. N(d))= (d) (d) N(d) = Using the formula for option value and the values of N(d) from above, we can find the call option value. V 2) Construct data tables for the exercise value and Black-Scholes formula value for this option, and graph this relationship. Include possible stock price values ranging up to $27. Option Value Intrinsic B-S formula Value Value Current stock price Exercise Price Assume you have been given the following information on Purcell Industries: P t o $15 0.5 0.12 X I'RF $15 10% 1) Using the Black-Scholes Option Pricing Model, what would be the value of the option? First, we will use formulas from the text to solve for d, and d. Hint: use the NORMSDIST function. N(d))= (d) (d) N(d) = Using the formula for option value and the values of N(d) from above, we can find the call option value. V 2) Construct data tables for the exercise value and Black-Scholes formula value for this option, and graph this relationship. Include possible stock price values ranging up to $27. Option Value Intrinsic B-S formula Value Value Current stock price Exercise Price