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Using the black-scholes option pricing model what would be

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Reference no: EM13570866

Assume you have been given the following information on Purcell Industries:

Current stock price = $18 Exercise price of option = $12
Time to maturity of option = 6 months Risk-free rate = 8%
Variance of stock price = 0.12 d1 = 1.94108
d2 = 1.69613 N(d1) = 0.97
N(d2) = 0.96

Using the Black-Scholes Option Pricing Model, what would be the value of the option? Round your answer to two decimal places.

Reference no: EM13570866

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