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(a) AXX stock is now trading at RM40.00. The stock has price volatility (standard deviation) of 30%. Calculate the fair value of a call option
(a) AXX stock is now trading at RM40.00. The stock has price volatility (standard
deviation) of 30%. Calculate the fair value of a call option using BSOPM based
on the following information:
Maturity = 180 days
Interest rate (rf) = 12%
Exercise price = RM35.00
(15 marks)
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