b) Suppose you are given the following information: Current market price of a share= R200 000 Options exercise price = R300 000 Time until the option expires= 5 yrs Risk free rate =4% Standard deviation of the returns on the share= 0.35 Required: i. Calculate d1 and d2 [3 marks] ii. Suppose N(d1) =0.7517 and N(d2) =0.4602; calculate the price of the call option on the share [3 marks] c) [6 marks] The current stock price of Bismarck industries is R200. At the end of the year the stock price will either be R260 or R160. Suppose the risk-free rate is 5%; A call option on the stock that expires in 1(one) year has a strike price of R210. [5 marks] Required: Calculate the price of the call option [5 marks]