Question: 1. O (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; 02= 50; Rp=10%

1. O (10 points) Using the Black/Scholes Option Pricing Model, calculate

1. O (10 points) Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S=74; X=70; T=6 months; 02= 50; Rp=10% ? | What is the intrinsic value of the call? What stock price is necessary to break-even? If volatility were to decrease, the value of the call would If the exercise price would increase, the value of the call would If the time to maturity were 3-months, the value of the call would If the stock price were $62, the value of the call would What is the maximum value that a call can take? Why

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