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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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