Luther Industries Does Not Pay a Dividend and Is Currently

question 29

Essay

Luther Industries does not pay a dividend and is currently trading at $25 per share.The current risk-free rate of interest is 5%.Calculate the price of a call option on Luther Industries with a strike price of $30 that expires in 75 days when N(d1)= .639 and N(d2)= .454.

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Definitions:

Pelagic

Referring to oceanic water not close to the bottom or shore, encompassing the entire water column used particularly in context to the life and ecosystems found within this vast, open ocean area.

Biodiversity

The variety and variability of life forms within a given ecosystem, region, or the entire Earth, crucial for maintaining ecological balance.

Trawl Fishing

A method of fishing that involves dragging a large net through the water, either at midwater or along the sea bottom.

Ocean Floor Ecosystems

Diverse habitats found on the ocean floor, ranging from deep sea vents to coral reefs, supporting a wide variety of life forms.