You would like to use an alternative methodolgy, therefore you will value options on Dunder Mifflin, Inc (DNDY) using the Black-Scholes-Merton Option Valuation Model (BSM Model). For the following questions assume DNDY’s price is $30, the risk free rate is 2%, DNDY’s volatility is 35%, and the options have 6 months until expiration. Assume the call and put you will value are at-the-money options. Question 12 (3 points) What is the value of N(d1) used in the BSM Model? Use the attached Z-Table. 0.6365 0.5636 0.5651 Question 12 (3 points) What is the value of N(d1) used in the BSM Model? Use the attached Z-Table. 0.6365 0.5636 0.5651 Question 13 (3 points) What is the value of N(D2) used in the BSM Model? Use the attached Z-Table. 0.5651 O 0.4681 0.4668 Question 14 (5 points) Calculate the value of a call on DNDY using the BSM Model. Use the attached Z- Table.
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