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4 C. DRISTA stock is now trading at RM45 per share on Bursa Malaysia. The risk-free rate is 7% and the share has a standard

4 C. DRISTA stock is now trading at RM45 per share on Bursa Malaysia. The risk-free rate is 7% and the share has a standard deviation of 28%. DRISTA call options with an exercise price of RM42 and 90 days maturity is currently selling at RM5.50. Formula: CS.N(d1) - Ke It. N(d2) Assume: N(d1) = 0.78 and N(d2) = 0.73 Required: Using Black-Scholes Option pricing model, evaluate whether the DRISTA call options is overpriced or underpriced

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