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(b) Packet One Networks is an internet service provider company. Currently, the company announces to sell a one year call option. The share price is
(b) Packet One Networks is an internet service provider company. Currently, the company announces to sell a one year call option. The share price is RM57 and the strike price is RM53. The risk-free rate is 12 percent per annum and the volatility is 10 percent. Calculate the value of call option. (9 marks)
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