Question;Assume you have been given the following;information on Purcell Industries;P;$65;X;$70;t;0.5;r;4%;s2;0.5;Using the Black-Scholes Option Pricing Model, what would;be the value of the option?'a.;Construct data tables for the intrinsic value and Black-Scholes;formula value for this option, and graph;this;relationship. Include possible stock;price values ranging up to $27.c. Suppose this call option is purchased today, draw the profit diagram of this option position at expiration.
Paper#51362 | Written in 18-Jul-2015Price : $27