Luther Industries Is Currently Trading for $27 Per Share

question 68

Multiple Choice

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:

• A)$1.30
• B)$7.10
• C)$2.60
• D)$1.95
• E)$3.00

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Definitions:

Sleep

A natural and periodic state of rest for the mind and body, characterized by altered consciousness and reduced sensory activity.

Prefrontal Cortex

The front part of the frontal lobe of the brain, involved in decision making, planning, personality expression, and moderating social behavior.

Cognitive Control Centers

Brain regions responsible for managing attention, regulating emotions, and coordinating complex behaviors.

Language Control Centers

Areas in the brain, such as Broca's and Wernicke's areas, responsible for the processing and production of language.