You are currently heavily invested inRemgro Ltd.. You are of the belief thatRemgro Ltd. is not expected to increase dramatically over the next 4 months and you are interested in using a covered call strategy to take advantage of the limited upside and achieve an increase in your overall portfolio's return. Use the information in the table below as well as the tables at the end of the paper to answer .

Share Price Today R3547.32

Exercise Price R3750

Risk-Free Rate 5%

Dividend Yield 3.5%

Variance 0.111

Months until Expiration 8

Using the information provided above, calculate the value of the out-the-money call option using the Black-Scholes option pricing model.

A)The values using the exact values and table method values are: 308.2323 and 305.2678 respectively

B)The values using the exact values and table method values are: 300.5265 and 297.6361 respectively

C)The values using the exact values and table method values are: 286.656 and 283.8991 respectively

D)The values using the exact values and table method values are: 356.0083 and 352.5843 respectively

E)The values using the exact values and table method values are: 258.9151 and 256.425 respectively