Assume you have been given the following information on Purcell Industries
Current Stock Price= $15 Exercise Price Option=$15
Time to maturity of option=6 months Risk-free rate=6%
Using the Black-Scholes Option Pricing Model, what would be the value of the option?
Please see the attached file
P(Stock Price) = $15; X(Exercise Price) = $15; t = 0.5(in years = ...
The solution explains concisely how to calculate the value of the option using the Black-Sholes Option Pricing Model.