A Sukuk with an embedded option has 3 months left to maturity. At maturity, sukuk holders can either get back the face value or convert to 1,000 shares of the issuing company. The sukuk's other features are as follows; Underlying Asset: 12 hectare piece of prime real estate (valued at RM 500 million) Total Issue Size: RM 500 million Number of Sukuks Issued: 50,000 Face Value per Sukuk : RM10,000 Annual Ijarah Payment : 8% Current market Value of stock = RM10.70 Volatility of stock price = 30% Risk free rate = 3.5% Suppose you are being offered the above sukuk, if your required yield for the sukuk is 8%, a) What is the value of the embedded option? (8 marks)