Question: 0 Question 6 1 Use the Black-Scholes option pricing model to price the following European call option. 15 points Stock price$ Exercise price $ 48.00

0 Question 6 1 Use the Black-Scholes option pricing model to

0 Question 6 1 Use the Black-Scholes option pricing model to price the following European call option. 15 points Stock price$ Exercise price $ 48.00 50. 00 4. 00% 3. 00% Risk free rate Dividend yield Time to expiration (in months) Std dev of stock return 18. 00% 0 a. Compute d1 (report answer to 4 decimal places but do not round in calculations) d1 b. Compute d2 (report answer to 4 decimal places but do not round in calculations) d2 8 c. What is the value of the call option? (Hint: Use Excel function normsdist to compute Nd' s) Call option value (to nearest cent)

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