Question: Attempts: Average: /1 3. Black-Scholes eBook Problem Walk-Through Problem 8-03 Black-Scholes Model Assume that you have been given the following information on Purcell Industries: Current

Attempts: Average: /1 3. Black-Scholes eBook Problem Walk-Through Problem 8-03 Black-Scholes

Attempts: Average: /1 3. Black-Scholes eBook Problem Walk-Through Problem 8-03 Black-Scholes Model Assume that you have been given the following information on Purcell Industries: Current stock price $17 Time to maturity of option 4 months Risk-free rate-796 variance of stock return = 0.15 d1 2.162955 d2 1.939348 strike price of option = $11 N(d1)-0.984728 N(d2) 0.973771 According to the Black-Scholes option pricing model, what is the option's value? Do not round intermediate calculations. Round your answer to the nearest cent

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