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Author Question: Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year ...  (Read 12 times)

skymedlock

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Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year ...
« 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

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Marked as best answer by skymedlock on Jul 9, 2019

pallen55

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Luther Industries is currently trading for $27 per share. The stock pays no dividends. A one-year ...
« Reply #1 on: Jul 9, 2019 »
$1.30
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