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please show formulas You have been given the following information on a call option on the stock of Puckett Industries: P = $65 X =

please show formulas

You have been given the following information on a call option on the stock of Puckett Industries:
P = $65 X = $70
t = 0.5 rRF= 5%
s = 0.50
a. Using the Black-Scholes Option Pricing Model, what is the value of the call option?
First, we will use formulas from the text to solve for d1and d2.
Hint: use the NORMSDIST function.
(d1) = N(d1) =
(d2) = N(d2) =
Using the formula for option value and the values of N(d) from above, we can find the call option value.
VC =
b. Suppose there is a put option on Puckett's stock with exactly the same inputs as the call option. What is the value of the put?
Put option using Black-Scholes modified formula =
Put option using put-call parity =

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