(ii) Inputting correct values for the variables 2
Calculation of d1 and d2 2
Establishing N(d1) and N(d2) 2
Call value 1
Put value 1
Value of the project 1

max marks 9

(iii)Estimated value and initial recommendation 2–3
Up to 2 marks per assumption discussed 5–6
Up to 2 marks per additional business risk discussed 5–6
Overarching recommendation(s) 1–2

Max marks 14