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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.


Definitions:

Social Constructed

Refers to ideas or concepts that are created and accepted by people in a society through cultural and social practices.

Judith Butler

A contemporary philosopher and gender theorist whose work has significantly influenced queer theory and feminist thought, particularly with the concept of gender performativity.

Gender

A social construct that encompasses the roles, behaviors, activities, and attributes that a given society considers appropriate for men, women, and non-binary people.

Desire

A strong feeling of wanting to have something or wishing for something to happen.

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