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    Black-Scholes Option Pricing Model

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    What is the value of a 9-month call with a strike price of $45 given the Black-Scholes Option Pricing Model and the following information?

    Stock price: $48
    Exercise price: $45
    Time to expiration: 0.75 years
    Risk-free rate: 5%
    N(d1): 0.718891
    N(d2): 0.641713

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    Solution Summary

    What is the value of a 9-month call given the Black-Scholes Option Pricing Model

    $2.49

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