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Calculate the price of the option using the black scholes

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Reference no: EM132859017

Question 1: Nestle (Malaysia) has grown alongside generations of Malaysians for the past 107 years, offering global expertise as well as in depth local understanding and engagement. Currently the company announces to sell a nine month's call options. The share price is RM65 and the strike price is RM60. The risk-free rate is 8 percent per annum and the volatility is 35 percent. Calculate the price of the option using the Black Scholes Option Pricing Model.

Reference no: EM132859017

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