The Black-Scholes option pricing model (OPM) was developed in 1973. The creation of the Black-Scholes OpM played a significant role in the rapid growth of options trading. Under the assumptions used by Fischer Black and Myron Scholes to derive the Black-5choles modal, if the option price is the price found using the Biack-5choles model, arbitrage opportunities will exist. According to the Black-Scholes Option Pricing Model, If the current stock price, P, increases, the value of the call option will Purple Pigeon Bird Seed Company has a current stock price of $32.00. A call option on this stock has an exercise price of $32.00 and 0.49 year to maturity. The variance of the stock price is 0.04, and the risk-free rate is 7%. You calculate ds to be 0.32 and N(0.32) to be 0.6255. Therefore, dz will be 0.18 and N(0.18) will be 0.5714. Using the Black-Scholes Option Pricing Model, what is the value of the option? (Note: Use 2.7183 as the approximate value of e.) 52.348 52.113 $1.878 51.996