Katrina is analyzing an expansion project for a new business and has developed this input for a Black-Scholes model.Stock price = $4,186,300,exercise price = $7,250,000,time period = 4 years,standard deviation = 13.8 percent,and the continuously compounded interest rate = 3.84 percent.What is the value of d₂ as it is used in the model? A).01338 B)1.2784 C)1.2953 D)−1.5713 E)−1.0293

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The Answer of Katrina is analyzing an expansion project for a new business and has developed this input for a Black-Scholes model.Stock price = $4,186,300,exercise price = $7,250,000,time period = 4 years,standard deviation = 13.8 percent,and the continuously compounded interest rate = 3.84 percent.What is the value of d₂ as it is used in the model? A).01338 B)1.2784 C)1.2953 D)−1.5713 E)−1.0293

Katrina Is Analyzing an Expansion Project for a New Business