Luther Industries Does Not Pay Dividend and Is Currently Trading

question 41

Essay

Luther Industries does not pay 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:

Generativity

A stage of psychosocial development in which individuals focus on guiding the next generation or contributing to the well-being of younger people.

Stagnation

A period or state of little or no growth or activity.

Crisis

Marcia’s term for the period of conscious decision making related to identity formation.

Gusii

An ethnic group in Kenya known for their distinct cultural practices and language.