Assume you have been given the following
information on Purcell Industries:
P $65 X $70
t 0.5 r 4%
s2 0.5
Using the Black-Scholes Option Pricing Model, what would
be the value of the option?

Construct data tables for the intrinsic value and Black-Scholes
formula value for this option, and graph
relationship. Include possible stock
price values ranging up to $27.

c. Suppose this call option is purchased today, draw the profit diagram of this option position at expiration.