Question: 30 Question 6 31 Use the Black-Scholes option pricing model to price the following European call option. 32 15 points Stock price $ Exercise price

30 Question 6 31 Use the Black-Scholes option pricing model to

30 Question 6 31 Use the Black-Scholes option pricing model to price the following European call option. 32 15 points Stock price $ Exercise price $ 48. 00 50. 00 34 35 36 37 38 39 40 a. Compute dl (report answer to 4 decimal places but do not round in calculations) 41 42 43 44 b. Compute d2 (report answer to 4 decimal places but do not round in calculations) 45 46 47 48 c. What is the value of the call option? (Hint: Use Excel function normsdist to compute Nd' s) 19 50 51 52 53 Ouestion 7 Risk free rate Dividend yield Time to expiration (in months) Std dev of stock return 4. 00% 3. 00% 18. 00% -0. 3808You re so smart! d1 0.4708 You're so smart! d2 Call option value (to nearest cent) 1.09

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