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Social Science Clinic => Business => Finance => Topic started by: skymedlock on Jul 9, 2019

Title: Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year ...
Post by: skymedlock on Jul 9, 2019
Luther Industries is currently trading for $27 per share.  The stock pays no dividends.  A one-year European put option on Luther with a strike price of $30 is currently trading for $2.60.  If the risk-free interest rate is 6% per year, then the price of a one-year European call option on Luther with a strike price of $30 will be closest to:
◦ $1.95
◦ $2.60
◦ $7.10
◦ $1.30
Title: Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year ...
Post by: pallen55 on Jul 9, 2019
$1.30