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Use the Black-Scholes Option Pricing model to value a call option on the stock of Houston-based Long-Range Videoing Equipment Inc. d.b.a. Outfield Sign Stealers Inc.

Use the Black-Scholes Option Pricing model to value a call option on the stock of Houston-based Long-Range Videoing Equipment Inc. d.b.a. Outfield Sign Stealers Inc.

Current stock price $15

d1 0.24495

Option strike price $15

d2 0

Option time to maturity 6 months

N(d1) 0.596752427

Stock return variance 0.12

N(d2) 0.5

risk-free rate 6%

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