1. Use the following information to calculate the theoretical Call option pric

1. Use the following information to calculate the theoretical Call option price via the Black Scholes Model.

Stock price: $22

Strike price: $24

Days to maturity by days in year: 120/365

Risk free rate: 0.08

Standard deviation: 0.25
Variance of return: 0.0625

2. Use the following information (which is the same as the immediate prior problem) to calculate the theoretical Put option price via the
Black Scholes Model.

Stock price: $22

Strike price: $24

Days to maturity by days in year: 120/365

Risk free rate: 0.08

Standard deviation: 0.25
Variance of return: 0.0625

3. Calculate the Present Value of Growth Opportunities based on the following information: Earnings Per Share = $8.00
Required Rate of Return = 14% Dividends Per Share = $1.50 Return on Equity = 16%