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Afridi sports wants to sell their factory valued recently at 7.8 million. Demand has been increasing therefore other factories prices have recently increased by 10%

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Afridi sports wants to sell their factory valued recently at 7.8 million. Demand has been increasing therefore other factories prices have recently increased by 10% with an annual standard deviation of 20%. An interested buyer wants an option to buy the factory in the next 12 months for 8 million. The risk-free rate of interest is 5% per year, compounded continuously. A. What are the d1 and d2 of this option? (Rounding to four decimal places) B. What are the cumulative probabilities of N(dl) and N(d2)? (Rounding to four decimal places)

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