Question: Assume S 0 = 23, X = 20, T = 0.5, r c = 0.09, and s 2 = 0.15 information is given about options

Assume S₀ = 23, X = 20, T = 0.5, r_c = 0.09, and s²= 0.15 information is given about options on the stock of a certain company.

What value does the Black-Scholes-Merton model predict for the call (Instructions: you must show the process leading to the final answer to receive credit. More points are allotted for this question).

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