С. DRISTA stock is now trading at RM45 per share on Bursa Malaysia. The risk-free rate is 7% and the share has a standard deviation of 28%. DRISTA call options with an exercise price of RM42 and 90 days maturity is currently selling at RM5.50. Formula: C = S.N(d1) - Ket. N(d2) Assume: N(d1) = 0.78 and N(d2) = 0.73 %3D Required: Using Black-Scholes Option pricing model, evaluate whether the DRISTA call options is overpriced or underpriced.

С. DRISTA stock is now trading at RM45 per share on Bursa Malaysia. The risk-free rate is 7% and the share has a standard deviation of 28%. DRISTA call options with an exercise price of RM42 and 90 days maturity is currently selling at RM5.50. Formula: C = S.N(d1) - Ket. N(d2) Assume: N(d1) = 0.78 and N(d2) = 0.73 %3D Required: Using Black-Scholes Option pricing model, evaluate whether the DRISTA call options is overpriced or underpriced.

Name: QUESTION 4DRISTA stock is now trading at RM45 per share on Bursa Mala
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Description: QUESTION 4DRISTA stock is now trading at RM45 per share on Bursa Malaysia. The risk-free rateis 7% and the share has a standard deviation of 28%. DRISTA call options with anexercise price of RM42 and 90 days maturity is currently selling at RM5.50.C

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter12: The Cost Of Capital

Section: Chapter Questions

Problem 26P

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