$1\mathrm{.}3$ Suppose a MTN share currently trades for R$89$ and pays a dividend yield of $7\%$ per

annum. The standard deviation of the share price is $22\%$ and the risk$-$free rate of return is

$8\mathrm{.}1\%.$ You may assume a $365-$day year. Use EXCEL to determine the Black Scholes

input $"$D$1"$ for a call option on MTN shares which have an exercise price of R$114$ which

expires $195$ days from now.

A$.-0\mathrm{.}1250$

B$.-0\mathrm{.}4679$

C$.-0\mathrm{.}5517$

D$.-0\mathrm{.}7125$

E$.-0\mathrm{.}0160$