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Hello - I'm struggling with the Black-Scholes Model. Please Help! Thank you!!! Problem My Calculations Black-Scholes Model Assume that you have been given the following
Hello - I'm struggling with the Black-Scholes Model. Please Help! Thank you!!!
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My Calculations
Black-Scholes Model Assume that you have been given the following information on Purcell Industries' call options: Currentstockprice=$16Timetomaturityofoption=9monthsVarianceofstockreturn=0.13d1=0.30024d2=0.01201Strikepriceofoption=$16Risk-freerate=6%N(d1)=0.61800N(d2)=0.49521 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 calculationsStep by Step Solution
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