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 =	50.00%
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 d1 and d2.
					Hint: use the NORMSDIST function.
	(d1)	=		N(d1) =				d1 =	{ ln (P/X) + [rRF + s2 /2) ] t } / (s t1/2)
	(d2)	=		N(d2) =				d2 =	d1 - s (t 1 / 2)
Using the formula for option value and the values of N(d) from above, we can find the call option value.
	VC	=						VC =	P[ N (d1) ] - X e-r t [ N (d2) ]
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 =	P[ N (d1) - 1 ] - X e-r t [ N (d2) -1 ]
				Put option using put-call parity	=			VP = VC - P + X exp(-rRF t)