Excel Activity: Black$-$Scholes Model $2$

Question $1$

$\frac{0}{10}$

Submit

Excel Activity: Black$-$Scholes Model

Start with the partial model in the file Ch$05$ P$09$ Build a

Model.xIsx. You have been given the following information

for a call option on the stock of Puckett Industries: $P=$

$$67\mathrm{.}00,x=$$$73\mathrm{.}00,t=0\mathrm{.}25,r_{RF}=4\mathrm{.}00\%,$ and $=0\mathrm{.}60.$

The data has been collected in the Microsoft Excel file below.

Download the spreadsheet and perform the required analysis

to answer the questions below. Do not round intermediate

calculations. Round your answers to the nearest cent.

Download spreadsheet Ch$05$ P$09$ Build a Model$-3$e$35$c$2.$xlsx

a$.$ Use the Black$-$Scholes option pricing model to

determine the value of the call option.

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b$.$ Suppose there is a put option on Puckett's stock with

exactly the same inputs as the call option. What is the

value of the puFFJFJJHF