Question: 1. Using the Black/Scholes Option Pricing Model, calculate the value of the call option given: S= 74; X=70; T=6 months; s 2 =.50; Rf =10%

1. Using the Black/Scholes Option Pricing Model, calculate the value of the call option given:

S= 74; X=70; T=6 months; s2=.50; Rf =10%

2. ) If the exercise price would increase, the value of the call would ___________?

3. If the time to maturity were 3-months, the value of the call would ___________?

4. If the stock price were $62, the value of the call would _________?

5. What is the maximum value that a call can take? Why?

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