c. On March 6, 2021, Asomdwe Ltd stock was trading at $13.62. A July call option on the stock has a strike price of $15. The annualized standard deviation in Asomdwe Ltd stock price over the previous year was 81.00%. This standard deviation is estimated using weekly stock prices over the year and the resulting number was annualized as follows: Weekly standard deviation = 1.556% Annualized standard deviation =1.556%*52 = 81% The option is expected to expire on Friday, July 20, 2021. There are 103 days to expiration. The annualized Treasury bill rate corresponding to this option life is 4.63%. Required i. Using the Black-Scholes model, determine the value of the call option ii. If the call option on the stock is currently valued at $2, determine whether it is overvalued or undervalued 6.5 Marks