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What would be the value of the option


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

Current stock price = $15                     Strike price of option = $15
Time to maturity of option = 6 months    Risk-free rate = 6%
Variance of stock return = 0.12             d1 = 0.24495
d2 = 0.00                                            N(d1) = 0.59675
N(d2) = 0.5000

Using the Black-Scholes Option Pricing Model, what would be the value of the option?

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Finance Basics: What would be the value of the option
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