Question: 1. Using the black and schools option pricing model, calculate the value of a call option whose market price sh. 50, the exercise price is

1. Using the black and schools option pricing model, calculate the

1. Using the black and schools option pricing model, calculate the value of a call option whose market price sh. 50, the exercise price is shs. 55, the risk free rate is 10%, the standard deviation of the security returns is 40% and the months remaining to maturity is 3 months. (15mks)

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