Start with the partial model in the file Ch05 P08 Build a Model xls on the textbook 's Web site You have been given the following information for a call option on the stock of Puckett Industries P $65 00, X $70 00, t 0 50, rRF 5 00 , and 50 00 a Use the Black Scholes option pricing model to determine the value of the call option b Suppose there is a put option on Puckett 's stock with exactly the same inputs as the call option What is the value of the put

Question: Start with the partial model in the file Ch05 P08 Build a Model.xls on the textbook's Web site. You have been given the following information

Start with the partial model in the file Ch05 P08 Build a Model.xls on the textbook's Web site. You have been given the following information for a call option on the stock of Puckett Industries: P = $65.00, X = $70.00, t = 0.50, rRF = 5.00%, and σ = 50.00%.

a. Use the Black-Scholes option pricing model to determine the value of the call option.

b. Suppose there is a put option on Puckett's stock with exactly the same inputs as the call option. What is the value of the put?

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