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The following information is available for equity stock of Rennex limited; Months to expiration 12 Risk-free rate 14% Standard deviation of stock returns 40% Exercise

The following information is available for equity stock of Rennex limited; Months to expiration 12 Risk-free rate 14% Standard deviation of stock returns 40% Exercise price Sh.110 Current Stock price Sh.120 Required: Calculate the value of the stock using Black-Scholes Option Pricing Model (OPM).

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