# Black-Scholes Option Pricing Model

What is the value of a 6-month put option with a strike price of $65 given the Black-Scholes Option Pricing Model and the following information?

Stock Price $68

Exercise Price $65

Time to expiration .5

Risk free rate .035

standard deviation .15

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What is the value of a 6-month put option with a strike price of $65 given the Black-Scholes Option Pricing Model and the following information?

Stock Price $68

Exercise Price $65

Time to expiration .5

Risk free rate .035

standard deviation .15

We will use Black Scholes Pricing Formula

Value of ...

#### Solution Summary

Black-Scholes Option Pricing Model has been used to value a put option.

$2.19