Question: Rework Problem 12-2 using the Black-Scholes model to estimate the value of the option: The risk-free rate is 6 percent. (Hint: Assume the variance of

Rework Problem 12-2 using the Black-Scholes model to estimate the value of the option: The risk-free rate is 6 percent. (Hint: Assume the variance of the project’s rate of return is 1.11 percent.)

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