The Black–Scholes Option Pricing Model (OPM). Given: Stock price = $23 Exercise price = $18 Risk-free tate = 0:06 Time to expire = 1.0 (year) Standard deviation of the stock’s return = 0.50 (variance...

The Black–Scholes Option Pricing Model (OPM). Given:

Stock price = $23

Exercise price = $18

Risk-free tate = 0:06

Time to expire = 1.0 (year)

Standard deviation of the stock’s return = 0.50 (variance is 0.25)

What is the value of this option?